SECTION 363.932. Release of Funds

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

(1) a statement as to sufficiency of funds to complete the activity;

(2) certified copies of each contract under which revenues for repayment of the rural community'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, evidence 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 engineering feasibility report required under §363.13 of this title (relating to Preliminary Engineering Feasibility Data) has been approved, the costs 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 have been met.

(c) Release of funds for building purposes. Prior to the release of funds for building purposes, the rural community 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 to complete the project;

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

(6) evidence 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) Escrow of funds. At the time of loan closing, the executive administrator may require the escrow of project funds related to building purposes when the rural community has not met the requirements of subsection (c) of this section.

Source Note: The provisions of this §363.932 adopted to be effective November 7, 2001, 26 TexReg 8848; amended to be effective July 30, 2012, 37 TexReg 5597