SECTION 53.231. Documentation of Developer (Multifamily Bonds Only)

The following shall constitute documentation of the developer:

(1) undated general certificate of the developer, executed by at least two officers or authorized representatives, including certifications and provisions (or confirmation of any such certifications and provisions which are contained in the basic financing documents) with respect to:

(A) due incorporation or creation, valid existence and good standing;

(B) incumbency of officers executing bond documents;

(C) appointment of authorized representative, if any;

(D) signature identifications;

(E) the bond documents submitted were properly executed by the developer, have not been amended or rescinded, and due performance thereof has been authorized by the developer;

(F) the terms and performance of the bond documents by the developer are not in conflict with the articles of incorporation or bylaws, partnership, or other agreement, of the developer or any other instrument or restriction to which the developer is a party or subject to;

(G) receipt of all necessary permits and approvals of governmental bodies or agencies with respect to the issuance and sale of the bonds and the developer has received or expects to receive and has applied or shall apply with due diligence for all necessary permits and approvals with respect to the construction or operation of the project;

(H) no event has occurred since the date of the developer's application to the issuer to issue the bonds that would result in a material adverse change in the financial condition of the developer or in the developer's ability to perform its obligation under the bond transaction documents or certification that the issuer has been provided with a complete description of the facts and circumstance of such event;

(I) no default under any agreement to which the developer is a party which would have a material adverse effect on the developer or certification that the issuer has been provided with a complete description of the facts and circumstance of such default;

(J) no-litigation pending or threatened against the developer with respect to the authority of the developer to enter into the bond transaction or to perform its obligations thereunder;

(K) documents submitted are in substantially the form approved by or on behalf of the issuer; and

(L) incorporated as exhibits, as applicable (or may be included as separate documents if certified as to accuracy):

(i) copy of articles of incorporation or other evidence of creation as certified by the appropriate state official;

(ii) copy of bylaws, partnership, or other agreement;

(iii) copy of certificate from appropriate state official of state of incorporation or creation of continued existence and good standing, dated within 60 days of transcript submission; and

(iv) if a developer created outside the State of Texas, certificate of good standing from the comptroller of public accounts of Texas and certificate of the secretary of state of Texas evidencing authority to do business in the State of Texas, both dated within 60 days of transcript submission;

(2) resolution or other evidence approving the bond financing and related documents;

(3) evidence of compliance with the Local Government Code (the Act), §394.902, if applicable (compliance is not required for refunding bonds):

(A) certification by the developer of reservation of the units in compliance with the Act, §394.902(a), and certificate of design engineer for the development that the reserved units meet the standards of the Texas Department on Aging; or

(B) form of receipt or other evidence from the issuer or the trustee acknowledging payment of the required fee pursuant to the Act, §394.902(b), (executed receipt to be submitted post-closing).

Source Note: The provisions of this §53.231 adopted to be effective November 14, 1990, 15 TexReg 6289.