1. (a) Release of Funds for Planning, Design and Permits. Prior to the release of funds for planning, design, and permits, the applicant shall submit for approval to the executive administrator the following documents:

   1. (1) a statement as to sufficiency of funds to complete the activity;
   2. (2) certified copies of each contract under which revenues for repayment of the applicant's debt will accrue;
   3. (3) executed consultant contracts relating to services provided for planning, design, and/or permits; and
   4. (4) other such instruments or documents as the board or executive administrator may require.
2. (b) Pre-design Funding. The funds needed for the total estimated cost of the planning and design costs if the DWSRF Engineering Feasibility Report required under §371.36 of this title (relating to Required DWSRF Engineering Feasibility Report) has been approved, the cost of issuance associated with the loan, and any associated capitalized interest will be released to the loan recipient and the remaining funds will be escrowed to the escrow agent bank or to the trust agent until all applicable requirements in subsections (a) and (c) of this section and §371.38 of this title (relating to Pre-Design Funding Option) have been met.

3. (c) Release of funds for building purposes. Prior to the release of funds for building purposes, the applicant shall submit for approval to the executive administrator the following documents:

   1. (1) a tabulation of all bids received and an explanation for any rejected bids or otherwise disqualified bidders;
   2. (2) one executed original copy of each construction contract the effectiveness and validity of which is contingent upon the receipt of board funds;
   3. (3) evidence that the necessary acquisitions of land, leases, easements and rights-of-way have been completed or that the applicant has the legal authority necessary to complete the acquisitions;
   4. (4) a statement as to sufficiency of funds to complete the project;
   5. (5) certified copies of each contract under which revenues to the project will accrue;
   6. (6) evidence that requirements and regulations of all local, state and federal agencies having jurisdiction have been met prior to release of building funds, including but not limited to permits and authorizations; and
   7. (7) other such instruments or documents as the board or executive administrator may require.
4. (d) Release of funds for projects constructed through one or more construction contracts. For projects constructed through one or more construction contracts, the executive administrator may approve the release of funds for all or a portion of the estimated project cost, provided all requirements of subsection (c) of this section have been met for at least one of the construction contracts.
5. (e) Escrow of funds. The executive administrator may require the escrow of an amount of project funding related to contracts which have not met the requirements of subsection (c) of this section at the time of loan closing.
6. (f) Release of funds in installments to water supply corporations, eligible NPNC applicants, or eligible private applicants. Funds may be released to water supply corporations, eligible NPNC applicants, or eligible private applicants in installments pursuant to the terms of the loan agreement and provisions of this section.

Source Note:The provisions of this §371.72 adopted to be effective March 18, 1997, 22 TexReg 2502; amended to be effective October 13, 1997, 22 TexReg 9893; amended to be effective June 10, 1998, 23 TexReg 5980; amended to be effective October 8, 1998, 23 TexReg 10042.