The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.     
       (1) Act--The Development Corporation Act, Texas Local Government Code, Title 12, as amended.      
       (2) Applicant--An EDC filing an application for a Texas Leverage Fund program loan.      
       (3) Application--The information submitted by an applicant to the Office, including supporting documentation and schedules, required by the Office for loan underwriting and loan approval under this program.      
       (4) Approval--The executive director's, or his/her designee's, approval of the terms and conditions for a program loan and loan agreement between the Office and the EDC.      
       (5) Bank--The financial institution providing credit facilities for this program.      
       (6) Board of directors--The governing body of an EDC.      
       (7) City--The governmental entity creating the EDC.      
       (8) Cost--As defined by the Act, §501.002(6) as applied to the use of program loan proceeds to fund eligible projects.      
       (9) Debt Service Coverage Ratio--The ratio of the projected or actual sales and use tax receipts generated by the levy and collection of the economic development sales and use tax by the city for the benefit of an EDC, which sales and use tax receipts shall be determined by using the lowest 12 consecutive months of sales and use tax receipts of the 18 months immediately preceding the date of determination thereof, to the scheduled maximum annual principal of and interest on the program loan plus the scheduled maximum annual principal of and interest on any other debt or obligation existing on the date of the program loan secured in whole or in part by and payable from such economic development sales and use tax on a parity with the proposed program loan and giving the holder thereof an equal and ratable claim to the proceeds of the economic development sales and use tax. In the event that an economic development sales and use tax has not been previously collected or has not been collected for at least 18 months, then there shall be estimated by the Office the economic development sales and use tax that may have been collected over that period had such economic development sales and use tax been in place.      
       (10) Economic development sales and use tax--That certain sales and use tax that may be levied by a city for the benefit of an EDC under either Chapter 504 or Chapter 505 of the Act.      
       (11) EDC--An economic development corporation created by a city pursuant to Chapter 504 or Chapter 505 of the Act.      
       (12) Executive director--The executive director of the Office.      
       (13) Federally assisted new communities--As defined by the Act, §2(11)(C) and §180.2(a)(3)(M) of this title (relating to Industrial Revenue Bond Program).      
       (14) Full time equivalent job--Permanent employment for 1,820 hours or more per year.      
       (15) Interest rate--The floating prime or base rate published in the Wall Street Journal from time to time (Wall Street Journal Prime Rate) or the interest rate in effect under the Program guidelines from time to time.      
       (16) Largest Four Year Sales Tax Decline--A decline in the total sales tax receipts of the city calculated as follows: (HIGH - LOW) / HIGH X 100. For the purpose of this definition "LOW" shall mean the lowest sum of sales tax revenue receipts collected by a city for any calendar year (adjusted for changes in sales tax rates) during the four year period preceding the date of calculation, as determined from the most recent June 30 or December 31, as applicable, for which sales tax data is available, and "HIGH" shall mean the highest sum of sales tax revenue received collected for any calendar year (adjusted for changes in sales tax rates) during the four year period preceding the date of calculation, as determined from the most recent June 30 or December 31, as applicable, for which sales tax data is available and which occurred in a calendar year preceding the calendar year in which the "LOW" occurred.      
       (17) Largest Fifteen Year Sales Tax Decline--A percentage decline in the total sales tax receipts of a participating city calculated as follows: (HIGH - LOW) / HIGH X 100. For purposes of this definition "LOW" shall mean the lowest sum of sales tax revenue receipts collected by the city for any calendar year (adjusted for changes in sales tax rates) during the 15 year period preceding the date of calculation, as determined from the most recent December 31, and "HIGH" shall mean the highest sum of sales tax revenue receipts collected for any calendar year (adjusted for changes in sales tax rates) during this same period and which occurred in a calendar year preceding the calendar year in which the "LOW" occurred.      
       (18) Office--The Economic Development and Tourism Office in the Office of the Governor.      
       (19) Parity debt--Debt or other obligations, existing or incurred during the term of the program loan, secured in whole or in part by and payable from the economic development sales and use tax receipts of the city on a parity with the program loan and giving the holder an equal and ratable claim to the proceeds of the economic development sales and use tax.      
       (20) Program--The Texas Leverage Fund.      
       (21) Program guidelines--The Office guidelines relating to the program in effect at any particular time pursuant to the Act and the authority granted to the Office under the Master Resolution and First Supplemental Resolution, as amended.      
       (22) Program loan--Loan from the Office to the EDC under the program.      
       (23) Project--An eligible project as defined by the Act.      
       (24) Projected Debt Service--The scheduled maximum annual debt service on all parity debt including any program loan.      
       (25) Rating--The long-term general obligation debt rating assigned by a rating agency. Any reference in this chapter to the rating structure of one rating agency shall be deemed to include a reference to the equivalent rating or ratings of the other rating agency.      
       (26) Rating agency--Standard Poor's Corporation, Moody's Investors Service and Fitch Investors Service, Inc.      
       (27) Resolution--The resolution, order, ordinance, or other official action by the governing body of the city or EDC.      
       (28) Rules--The rules of the Office.      
       (29) State--The State of Texas.      
       (30) Texas Enterprise Zone Act--Texas Government Code, §§2303.001 et seq., as amended.      
       (31) Texas Leverage Fund--The economic development program of the Office pursuant to which the Office makes loans, meeting certain criteria in accordance with the Master Resolution and First Supplemental Resolution, as amended, to certain EDCs to fund the cost of certain eligible projects as defined by the Act and which loans are secured by and paid from the economic development sales and use tax receipt proceeds.      
       (32) Trustee--A corporation with corporate trust powers serving in the capacity of trustee under the Office's Taxable Commercial Paper Notes Series A pursuant to a trust agreement between the corporation and the Office under the Master Resolution and First Supplemental Resolution, as amended.      
       (33) User--An individual, partnership, corporation, or any other private entity, whether organized for profit or not for profit, or a city, county district, or any other political subdivision or public entity of the state or federal government.      
     Source Note:        The provisions of this §181.2 adopted to be effective March 27, 1997, 22 TexReg 2871; amended to be effective December 10, 2001, 26 TexReg 10054; amended to be effective August 5, 2012, 37 TexReg 5730