SECTION 363.43. Release of Funds

(a) Release of funds for planning, design and permits. Prior to the release of funds for planning, design, and permits, the political subdivision shall submit for approval to the executive administrator the following documents:

(1) a statement as to sufficiency of funds if additional funds are necessary to complete the activity;

(2) certified copies of each contract under which revenues for repayment of the political subdivision's debt will accrue;

(3) executed consultant contracts relating to services provided for planning, design, and/or permits;

(4) unless funds are released under the pre-design funding option, documentation that the requirements and regulations of all identified local, state, and federal agencies having jurisdiction have been met, including, but not limited to, permits and authorizations; and

(5) other such instruments or documents as the board or executive administrator may require.

(b) Pre-design funding. The funds needed for the total estimated cost of the engineering planning, and design cost if the preliminary engineering feasibility report required under §363.13 of this title (relating to Preliminary 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 until all applicable requirements in subsections (a) and (c) of this section and §363.16 of this title (relating to Pre-design Funding Option) have been met.

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

(1) a tabulation of all bids received and an explanation for any rejected bids or otherwise disqualified bidders;

(2) one executed original copy of each construction contract the effectiveness and validity of which is contingent upon the receipt of board funds;

(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) a statement as to sufficiency of funds if additional funds are necessary to complete the project;

(5) certified copies of each contract under which revenues to the project will accrue;

(6) documentation that all requirements and regulations of all identified local, state, and federal agencies having jurisdiction have been met, including permits and authorizations; and

(7) other such instruments or documents as the board or executive administrator may require.

(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, only for the construction contract that has been approved for construction.

(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.

(f) Release of funds in installments to water supply corporations. Funds may be released to water supply corporations in installments and pursuant to the provisions of this section.

Source Note: The provisions of this §363.43 adopted to be effective July 19, 1991, 16 TexReg 3768; amended to be effective August 12, 1994, 19 TexReg 5847; amended to be effective October 13, 1997, 22 TexReg 9892; amended to be effective December 7, 1999, 24 TexReg 10882; amended to be effective December 25, 2007, 32 TexReg 9721; amended to be effective July 30, 2012, 37 TexReg 5597; amended to be effective February 3, 2021, 46 TexReg 832