1. (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. (1) As part of the orientation, the authority will provide the client agency the following information:

      1. (A) an explanation of the bond issuance process in plain language;
      2. (B) a review of the specific tasks required for a bond issue and the time needed for such tasks;
      3. (C) a review of the documents, other information, if any, and time requirements applicable to the client agency's request for financing; and
      4. (D) an identification of the authority's staff and outside consultants who will work on the financing, by name and function.
   2. (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. (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.

2. (b) Request for financing. A request for financing under this section shall include:

   1. (1) a resolution of the client agency's governing board signed by the appropriate officer authorizing submission of the request for financing;
   2. (2) a project analysis, required by the authority for application to the Bond Review Board, except as provided in §221.4(b) of this title (relating to Criteria for Issuance of Bonds);
   3. (3) a schedule of actions required to be accomplished by the client agency prior to the first actual disbursement of funds after issuance; and
   4. (4) a disbursement schedule.
3. (c) Amendment to request for financing. A client agency may reschedule the date requested for authority consideration of the bond issuance 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.

4. (d) Board action. The request for financing will be posted for consideration by the board at its next regularly scheduled open meeting following the authority's receipt of the request. If the client agency's request is received eight days before the board's regularly scheduled meeting date, which schedule shall be posted on the authority's website, the request will be timely for the board's consideration at the scheduled meeting. 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. (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 method of sale of the bonds, either negotiated or competitive.
   2. (2) If the board determines to sell the bonds through a negotiated sale, it will designate an underwriting syndicate in accordance with authority's underwriters selection procedures.
   3. (3) If the board determines to sell the 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 approve the distribution of the invitation and the Preliminary Official Statement at its open meeting in the month immediately following.

5. (e) Procedures following board approval of a request for financing. 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. (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. (2) After the Bond Review Board approves the financing, the issuance and sale of the bonds may be scheduled and completed.

Source Note:The provisions of this §221.3 adopted to be effective November 25, 1988, 13 TexReg 5749; amended to be effective December 15, 1998, 23 TexReg 12686; amended to be effective January 31, 2005, 30 TexReg 404.