Texas Administrative Code
Title 31 - NATURAL RESOURCES AND CONSERVATION
Part 10 - TEXAS WATER DEVELOPMENT BOARD
Chapter 363 - FINANCIAL ASSISTANCE PROGRAMS
Subchapter G - SMALL COMMUNITY EMERGENCY LOAN PROGRAM
Division 3 - CLOSING AND RELEASE OF FUNDS
Section 363.721 - Loan Closing

(1) the term of the loan and a schedule for repayment of principal and interest;

(2) the interest rates for the loan, which will be set as the standard rate under § 363.33(a)(3) of this title (relating to Interest Rates for Loans and Purchase of Board's Interest in State Participation Projects);

(3) that an annual audit of the political subdivision, prepared in accordance with generally accepted auditing standards by a certified public accountant or licensed public accountant, be provided annually to the executive administrator for the term of the loan;

(4) that a final accounting be made to the executive administrator of the total sources and authorized use of project funds if so requested by the executive administrator;

(5) that the political subdivision shall fix and maintain rates and collect taxes and/or charges to provide:

(6) if the political subdivision intends to obtain permanent financing to pay the principal and any unpaid accrued interest on the emergency loan, the political subdivision covenants that:

(7) that the political subdivision covenants to abide by the board's rules and relevant statutes, including the Texas Water Code, Chapter 15;

(8) that the political subdivision covenants to comply with all applicable state and federal environmental requirements prior to the initiation of construction and any mitigation which might be required after construction;

(9) that the political subdivision will apply any unused funds to the repayment of loan principal in inverse order of maturity;

(10) that the political subdivision shall maintain current, accurate and complete records and accounts necessary to demonstrate compliance with financial assistance related legal and contractual provisions;

(11) that the political subdivision issuing bonds, or an obligated person for whom financial or operating data is presented, will undertake, either individually or in combination with other issuers of the political subdivision's obligations or obligated persons, in a written agreement or contract to comply with requirements for continuing disclosure on an ongoing basis substantially in the manner required by Securities and Exchange Commission (SEC) rule 15c2-12 and determined as if the board were a Participating Underwriter within the meaning of such rule, such continuing disclosure undertaking being for the benefit of the board and the beneficial owner of the political subdivision's obligations, if the board sells or otherwise transfers such obligations, and the beneficial owners of the board's bonds if the political subdivision is an obligated person with respect to such bonds under rule 15c2-12; and

(12) any additional conditions that may be imposed by the board or requested by the executive administrator.

(1) all loans shall be closed in book-entry-only form;

(2) the political subdivision shall use a paying agent/registrar that is a Depository Trust Company (DTC) participant;

(3) the political subdivision shall be responsible for paying all DTC closing fees assessed to the political subdivision by the Board's custodian bank directly to the Board's custodian bank;

(4) the political subdivision shall provide evidence to the Board that one fully registered bond has been sent to the DTC or to the political subdivision's paying agent/registrar prior to closing.