Current through Reg. 49, No. 38; September 20, 2024
(a) Preliminary
Requirements. Following a legislative session in which bonds have been
authorized for a project, the authority and the client agency will confirm
basic information concerning the bond issue, such as the time, amount, and
scope of the project, and schedule an orientation meeting at their mutual
convenience. In most cases, a formal orientation meeting will be required and
such a meeting should occur before the authority must begin work on the bond
issue, but after the client agency has had sufficient time to prepare a
preliminary plan for the project.
(1) As part
of the orientation, the authority will provide the client agency the following
information:
(A) an explanation of the bond
issuance process in plain language;
(B) a review of the specific tasks required
for a bond issue and the time needed for such tasks;
(C) a review of the documents, other
information, if any, and time requirements applicable to the client agency's
request for financing; and
(D) an
identification of the authority's staff and outside consultants who will work
on the financing, by name and function.
(2) The client agency should be prepared to
review a detailed project description and project schedule during the
orientation meeting and identify the client agency's staff who will work with
the authority on the bond issue.
(3) If a client agency's staff is familiar
with the bond issuance process and the authority's requirements for issuing
bonds because they have participated in prior bond issuance transactions, a
formal orientation meeting is not required. The executive director will insure
that up-to-date information described in paragraph (1)(A) - (D) of this
subsection is provided to the client agency in an alternative manner such as by
schedules, memorandum, or telephone conference.
(b) Request for financing. A request for
financing under this section shall include:
(1) a resolution of the client agency's
governing body signed by the appropriate officer authorizing submission of the
request for financing and evidence of approval by any other individual or body
from which approval for debt issuance is required;
(2) a project summary, required by the
authority for application to the Bond Review Board; and
(3) an expenditure schedule.
(c) Amendment to request for
financing. A client agency may reschedule the date requested for authority
consideration of the bond issuance or amend its request by submitting an
amendment to its request for financing at any time prior to the authority board
meeting at which the issue will be considered.
(d) Board action. The request for financing
will be posted for consideration by the board at the next open meeting
following the authority's receipt of the request, for which timely public
notice may be given pursuant to Texas Government Code, Chapter 551. The client
agency will be informed promptly of a change in the board's meeting date for
the month and the exact date on which the request will be considered.
(1) The board may either approve the request
or require additional information. When it approves a request for financing,
the board will also determine the type of public security to be issued and the
method of sale whether negotiated, competitive, or through private
placement.
(2) The board's approval
of a request for financing is deemed to constitute approval of the submission
of an application to the Bond Review Board for approval of the issuance of debt
and instruction to staff to proceed with submission of the
application.
(3) If the board
determines to sell bonds through a negotiated sale, it will designate an
underwriting syndicate in accordance with authority's underwriter selection
procedures.
(4) If the board
determines to sell bonds through a competitive sale, it will authorize the
executive director and financial advisor to prepare an invitation for
competitive bids in the time and manner required so that the board may approve
the distribution of the invitation and the Preliminary Official Statement at
its open meeting in the month immediately following.
(5) If the board determines to finance a
request through the issuance of commercial paper notes, staff shall proceed to
complete such issuances.
(e) At least one representative of a client
agency must attend any board meeting, including meetings of the Bond Review
Board, at which the client agency's financing request is considered, unless
otherwise advised by the executive director or the executive director's
designee.
(f) Procedures following
board approval of a request for financing through the issuance of bonds. As
soon as possible following the board's approval of a request for financing, the
authority staff, financial advisors, bond counsel, representatives of the
client agency, and, for negotiated sales, the senior manager of the
underwriting syndicate and its counsel, will convene an organization meeting to
prepare a schedule of events for the financing, and begin work on the financing
documents and an application for Bond Review Board approval of the financing.
(1) In most cases, the application for Bond
Review Board approval will be submitted timely for consideration and approval
of the Bond Review Board at its next regularly scheduled meeting following the
board's approval of the request, however, the timing of the submission is
within the discretion of the executive director.
(2) After the Bond Review Board approves the
financing, the issuance and sale of the bonds may be scheduled and
completed.
