Section 225.3 - DefinitionsThe following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Act--The Texas Public Finance Authority Act, Texas Government Code, Chapter 1232, as amended.(2) Administrative costs--The reasonable costs incurred by the authority in developing, administering, and monitoring the program, which costs include, but are not limited to fees for the paying agent, the dealer, the servicing agent, and the authority's operational charges.(3) Amortization schedule--A detailed schedule of principal and interest payments and administrative costs due for each lease payment as required under the master lease agreement and contained in each lease supplement. The principal amount will include the purchase price of the eligible projects and the costs of issuance, if any, which will be separately itemized.(4) Authority--The Texas Public Finance Authority, or any successor to its duties and functions.(5) Authorized representative--That person(s) duly authorized by a client agency and the authority to execute and deliver a master lease agreement and lease supplement(s) and such other documents as are deemed necessary or appropriate to implement the program, and a client agency's participation therein.(6) Board--The board of directors of the authority.(7) Bond Review Board--The Bond Review Board as defined by the Texas Legislature pursuant to Texas Government Code, Chapter 1231, or any successor to its duties and functions.(8) Bundled purchases--Those purchases of multiple eligible projects individually valued at a minimum of $100 for and on behalf of a client agency, which are aggregated into one vendor contract for acquisition.(9) Client agency--Any Texas state agency or Texas institution of higher education that participates in the program.(10) Comptroller--The Comptroller of Public Accounts of the State of Texas, or any successor thereto.(11) Comptroller's interagency agreement--The agreement between the authority and the comptroller authorizing the authority to access each client agency's appropriated funds to pay debt service on the program by delivering payment vouchers to the comptroller drawn on the client agency's designated funds.(12) Costs of issuance--All costs associated with the program, including, but not limited to, printing costs, costs of preparation of documents, and fees to rating agencies, financial advisor, credit and liquidity providers, bond counsel, and underwriters.(13) Debit memo--The notice provided to each client agency within 30 days after each lease payment. The debit memo will include the name of the client agency, each lease supplement by identifying number, the eligible project, the total amount paid reflected as principal and interest payments, administrative costs, the payment date, credit, if any, and the remaining principal balance.(14) Eligible project--Any physical structure that has been authorized by the Texas legislature for the authority to finance and is used by a client agency to conduct official Texas state business, together with the land and major equipment or personal property that is functionally related to the physical structure, or any other fixed asset used by a client agency to conduct official Texas state business, or project, including, without limitation, telecommunications devices or systems, automated information systems, computers and computer software, and energy performance contracts, provided, that such property has a useful life of at least three years, and a value of at least $10,000, valued either individually or as a group of individual items of property, each having a minimum value of $100 per item.(15) Fees--The amount assessed each client agency for participating in the program. Fees include the costs of issuance, if any, and administrative costs.(16) Interim financing--The initial financing source by which an eligible project may be financed if it is deemed advisable by the authority. Interim financing will occur when the authority issues its Master Lease Purchase Program Tax-Exempt Commercial Paper Revenue Notes in various amounts, not to exceed $300 million outstanding at any one time, or such other amount authorized by resolution of the board.(17) LBB--The Legislative Budget Board of the State of Texas, or any successor to its duties and functions.(18) Lease payments--Those amounts specified in the lease supplements and made pursuant to the comptroller's intercept. The term "lease payments" also includes all payments and pre-payments, if any, made while the eligible project is in the interim financing.(19) Lease revenue bonds--The long-term bonds issued by the authority either to refinance an eligible project that has been initially financed through interim financing, or to fund the purchase of an eligible project.(20) Lease supplement--A form promulgated by the authority to be executed by each client agency which incorporates the terms of the master lease agreement and other agreements under the program. The lease supplement shall specifically identify the eligible project to be financed, including the serial number or other Texas state identification number, the exact amount to be paid, the payee, and any updates or corrections to the request for financing.(21) Master lease agreement--The contract executed by the authorized representative of a client agency and the authority, containing such terms and provisions necessary to authorize the client agency to participate in the program and the authority to make payments on behalf of the client agency for the purchase of an eligible project as specifically set forth in each lease supplement.(22) Program--The Texas Public Finance Authority Master Lease Purchase Program described in this chapter to be carried out by the authority for the purpose of financing or refinancing eligible projects.(23) Progress payments--Periodic payments for eligible projects to be made during installation of and prior to acceptance of such eligible project by the client agency that are set out in an agreement with the vendor. Such agreement must provide for specific payments corresponding to completion of definitive components sufficient to create identifiable collateral.(24) Request for financing--A request from a client agency to the authority to finance the acquisition of an eligible project through the program. Such request for financing shall include an itemized description of the eligible project prepared by the client agency including the estimated cost of acquisition, the estimated useful life of the project, the proposed date(s) of delivery and acceptance of the eligible project, the proposed use of the eligible project, and the source of funds to be used by the client agency to make the payments for the eligible project, and any one of the following documents: (A) a copy of the purchase order for the eligible project;(B) a copy of the contract prepared and awarded by the Texas Department of Information Resources for an eligible project; or(C) any awarded contract for an eligible project, or for bundled purchases, a copy of which is sent to and received by the authority and which may be generated by any client agency.(25) State agency--A Texas board, commission, department, office, agency, institution of higher education or other governmental entity in the executive, judicial, or legislative branch of Texas state government.(26) State lease fund account--The account by that name created by the Act.(27) Statement of acceptance--A statement contained in the lease supplement, executed by the client agency, which states that the eligible project has been received, inspected, and found to be in fully acceptable condition by the client agency, that all approvals, if any, have been obtained and that all other requirements of law have been satisfied and authorizing the authority to provide payment to the vendor.34 Tex. Admin. Code § 225.3
The provisions of this §225.3 adopted to be effective April 14, 1993, 18 TexReg 2143; amended to be effective December 15, 1998, 23 TexReg 12687; amended to be effective January 31, 2005, 30 TexReg 405; amended to be effective July 14, 2009, 34 TexReg 4642; amended to be effective April 25, 2013, 38 TexReg 2510