1. (a) Form. Applications must be filed on forms prescribed by the board and must contain all information and documentation required under the Act and this chapter, as applicable.

2. (b) Application Filing. The issuer shall submit one original and two copies of the application for reservation. Each application must be accompanied by the following:

   1. (1) the application fee;
   2. (2) the certificate regarding fees, on the form prescribed by the board;
   3. (3) a copy of the inducement resolution or other similar official action taken by the issuer with respect to the bonds and the project which are the subject of the application, certified by an officer of the issuer; or a copy of the certified resolution of the issuer authorizing the filing of the application for reservation;
   4. (4) a copy of the issuer's articles of incorporation as certified by the secretary of state of Texas and bylaws, including amendments thereto and restatements thereof, or alternatively, a certification that there have been no amendments to the articles of incorporation or bylaws since the last submission of these items to the board;
   5. (5) a copy of the issuer's certificate of continued existence from the secretary of state of Texas or a copy of the issuer's certificate of good standing from the comptroller of public accounts of Texas, dated within 30 days of submission of application;
   6. (6) a statement by the issuer, other than an issuer of a state-voted issue or the Texas Department of Housing and Community Affairs, that the bonds are not being issued for the same stated purpose for which the issuer has received sufficient carryforward during a prior year or for which there exists unexpended proceeds from a prior issue or issues of bonds issued by the same issuer, or based on the issuer's population;
   7. (7) if unexpended proceeds exist from a prior issue or issues of bonds, other than a state-voted issue or an issue by the Texas Department of Housing and Community Affairs, issued by the issuer or on behalf of the issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of this application, a statement by the trustee as to the current amount of unexpended proceeds that exists for each such issue. The issuer of the prior issue of bonds shall certify to the current amount of unexpended proceeds that exists for each issue should a trustee not administer the bond issues;
   8. (8) if unexpended proceeds other than prepayments exist from a prior issue or issues of bonds, other than a state-voted issue or an issue by the Texas Department of Housing and Community Affairs, issued by issuer or on behalf of issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of this application, a definite and binding financial commitment agreement must accompany the application in such form as the board finds acceptable, to expend the unexpended proceeds within 12 months after the date of receipt by the board of an application for reservation. For purposes of this paragraph, the commitment by lenders to originate and close loans within a certain period of time shall be deemed a definite and binding agreement to expend bond proceeds within such period of time and any additional period of time during which such origination period may be extended under the terms of such agreement; provided however, that any such extension provision may be amended, prior to the date on which the bond authorization requirements described in subsection (c) of this section must be satisfied, to provide that such period shall not be extended beyond 12 months after the date of receipt by the board of an application for reservation;
   9. (9) if unexpended proceeds exist from a prior issue or issues of bonds, other than a state-voted issue or an issue by the Texas Department of Housing and Community Affairs, issued by the issuer or on behalf of the issuer, or based on the issuer's population, for the same stated purpose for which the bonds are the subject of the pending application, a written opinion of legal counsel, addressed to the board, to the effect, that the board may rely on the representation contained in the application to fulfill the requirements of the Act and that the agreement referred to in paragraph (8) of this subsection constitutes a legal and binding obligation of the issuer, if applicable, and the other party or parties to the agreement;
   10. (10) a written opinion of legal counsel, addressed to the board, to the effect that the bonds are required to be included under the state ceiling and that the issuer is authorized under the laws of the state to issue bonds for projects of the same type and nature as the project which is the subject of the application. This opinion shall cite by constitutional or statutory reference the provision of the Constitution or law of the state which authorizes the bonds for the project;
   11. (11) a qualified mortgage bond issuer that submits an application for reservation as described in the Act, §3(c), shall provide a statement certifying to the most recent closing of qualified mortgage bonds determined as provided in §190.2(b)(3) of this title (relating to the Allocation and Reservation System), and the most recent date of a reservation received for mortgage revenue bonds and state the government unit(s) for which the local population was based for the issuance of bonds or for receipt of a reservation; and
   12. (12) for a qualified residential rental project issue, an issuer that submits an application as described in the Act, §3(c), shall provide a copy of an executed earnest money contract between the borrower and the seller of the project. This earnest money contract must be in effect at the time of submission of the application to the board. If the borrower owns the property, evidence of ownership must be provided.

3. (c) Bond authorization requirements. Not later than 35 calendar days after an issue's reservation date, the issuer shall submit to the board:

   1. (1) one-third of the closing fee;
   2. (2) the certificate regarding fees, on the form prescribed by the board;
   3. (3) a certificate signed by the issuer that certifies the principal amount of the bonds to be issued or the portion of the state ceiling that will be converted to mortgage credit certificates;
   4. (4) a list of finance team members with their addresses and telephone numbers;
   5. (5) if applicable, an amended agreement pursuant to subsection (b)(8) of this section;
   6. (6) a bond authorization requirements checklist, on the form prescribed by the board.
4. (d) Closing fee. The remaining two-thirds of the fee must be paid simultaneously with closing on the bonds. The issuer should submit the fee to the board not later than the fifth business day after the day on which the bonds are closed.

5. (e) Closing documents. Not later than the fifth business day after the day on which the bonds are closed the issuer shall file with the board:

   1. (1) a certificate regarding fees, on the form prescribed by the board;
   2. (2) a closing documents checklist, on the form prescribed by the board;
   3. (3) a certificate of delivery on the form prescribed by the board;
   4. (4) a certified copy of the bond resolution authorizing the issuance of bonds, and setting forth the specific principal amount of the bond issue;
   5. (5) if one is required, a copy of the approval of the local government unit or local government units, certified by a public official with the authority to certify such approval. This requirement shall not apply to any bonds for which the Code does not require such a public hearing and approval of a local government unit or local government units;
   6. (6) the document evidencing compliance with the Act, §3(g);

   7. (7) other documents relating to the issuance of bonds, including a statement of the bonds':

      1. (A) principal amount;
      2. (B) interest rate or the formula by which the interest is calculated;
      3. (C) maturity schedule;
      4. (D) purchaser or purchasers; and
   8. (8) an official statement;

   9. (9) for mortgage credit certificates the issuer shall file item (1) of subsection (e) and the following:

      1. (A) a certified copy of the issuer's resolution electing to convert state ceiling to mortgage credit certificates;
      2. (B) issuer's mortgage credit certificate election; and
      3. (C) program plan.
6. (f) Additional information. The board may require additional information at any time before granting a certificate of reservation or certificate of allocation.

7. (g) Application restrictions.

   1. (1) In order to submit an application for reservation prior to October 21 of the year immediately preceding the program year an issuer or borrower must have been in existence on October 1 of that year.
   2. (2) Project substitutions will not be allowed after the application for reservation has been delivered to the board.
   3. (3) No issuer may submit an application for reservation for the same or substantially the same project or projects as are contained in the application of another issuer.

   4. (4) For any one project, no issuer, prior to September 1 of the program year, may exceed the following maximum application limits:

      1. (A) $25 million for issuers described by the Act, §2(b)(1), other than the Texas Department of Housing and Community Affairs;
      2. (B) $50 million for issuers described by the Act, §2(b)(2) other than the Texas Higher Education Coordinating Board and $75 million for the Texas Higher Education Coordinating Board;
      3. (C) an amount as limited by the code for issuers described by the Act, §2(b)(3);
      4. (D) the lesser of $15 million or 15% of the amount set aside for this purpose for issuers described by the Act, §2(b)(4);
      5. (E) $25 million for issuers described by the Act, §2(b)(6); and
      6. (F) $35 million for issuers described by the Act, §2(b)(5).
   5. (5) The board may not accept applications for more than one project located at, or related to, a business operation at a particular site for any one program year.

Source Note:The provisions of this §190.3 adopted to be effective January 3, 1992, 16 TexReg 7646; amended to be effective January 11, 1993, 18 TexReg 65; amended to be effective February 10, 1994, 19 TexReg 634; amended to be effective December 21, 1995, 20 TexReg 10389; amended to be effective October 8, 1997, 22 TexReg 9895.