The 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.      
       (2) Authority--The Texas Public Finance Authority, together with any successor to its duties and functions.      
       (3) Board--The board of directors of the authority, the governing body of the authority.      
       (4) Bond Review Board--The Bond Review Board as created by the Texas Legislature pursuant to Texas Government Code, Chapter 1231, or any successor to its duties and functions.      
       (5) Bonds--Public securities issued by the authority pursuant to a constitutional provision and the Act, the Act, or other legislation, including bonds, notes and commercial paper.      
       (6) Capitalized interest--That portion of the proceeds of bonds which represents interest to be capitalized and payable prior to completion of acquisition, construction, or renovation of the projects being financed with such bonds.      
       (7) Client Agency--A state agency or institution of higher education, or other entity on whose behalf the board may issue bonds.      
       (8) Code--The Internal Revenue Code of 1986.      
       (9) Commercial paper notes--Variable rate public securities that mature in not more than 270 days and issued by the authority pursuant to a constitutional provision and the Act, the Act, or other legislation.      
       (10) Comptroller--The Comptroller of Public Accounts of the State of Texas, or any successor thereto.      
       (11) Constitutional provision--A provision of the Texas Constitution that authorizes the issuance of general obligation bonds by the authority; namely: Article III, §49-h; Article III, §49(e); Article III, §49(i); Article III, §49-l; Article III, §49-n; Article III, §50-f; Article III, §50-g; or Article III, §67.      
       (12) Construction schedule--The time period and sequence of action during which the actual construction of a project or projects is planned to be accomplished.      
       (13) Costs of issuance--The costs related to the issuance of any issue of bonds, including, but not limited to:                (A) financing charges, including insuring principal and interest payment on the bonds or obtaining other credit enhancement for the bonds;                 (B) professional fees and expenses, including architectural, engineering, surveying, and legal services;                 (C) administrative expenses of the authority to the extent provided by law;                 (D) the authority's or the paying agent/registrar's charges and expenses;                 (E) rating agency fees;                 (F) bond printing expenses; and                 (G) such other expenses as may be necessary or incident to issuing and marketing of the bonds.        
       (14) Debt service fund--Generally, the fund created in financing documents to contain money for the payment of debt service on the bonds.      
       (15) Disbursement--The transfer of bond proceeds within a project fund from the authority's control to the client agency's control.      
       (16) Expenditure schedule--The schedule controlling the frequency and amounts of expenditures from bond proceeds and used for payment of duly authorized expenses relating to a project.      
       (17) Executive director--The executive director, or other authorized agent of the authority empowered by the board to perform the duties of the executive director.      
       (18) Financing documents--Those documents approved by the board relating to the issuance of bonds, including, but not limited to, bond resolutions, financing agreements, funds management agreements, lease agreements, and official statements.      
       (19) General appropriations act--Any legislative act appropriating money for the operation of state government.      
       (20) General obligation bond--A bond issued on behalf of the State of Texas, the repayment of which is guaranteed by the full faith and credit of the State of Texas and which has been authorized by the Texas Constitution.      
       (21) Legislature--The Legislature of the State of Texas.      
       (22) Memorandum of understanding--The document executed by the authority and a client agency that defines the division of authority and responsibility between the authority and a client agency.      
       (23) Plans and specifications--The plans and specifications for each respective project, as the same may be amended from time to time.      
       (24) Project--The construction, renovation, acquisition, or equipping a building, structure, or other facility, and the component parts thereof, or program authorized by the legislature for financing by a debt issuance.      
       (25) Project Summary--A general description of the project that will be paid for with proceeds of bonds or commercial paper notes including, but not limited to:                (A) a complete description of the facility or project together with a justification of such facility or project prepared by the client agency;                 (B) a description of the proposed facility prepared by an architect/engineer and including schematic plans and outline specifications describing the type of construction and probable materials to be used, sufficient to establish the general scope and quality of construction;                 (C) an estimate of the probable cost of construction;                 (D) a description of the proposed site of the project and an estimate of the cost of site preparation;                 (E) an overall estimate of the cost of the project;                 (F) a description of the program to be financed, including costs and a schedule of expenditures; and                 (G) other information as required by the authority.        
       (26) Project costs--To the extent authorized by law or regulation, all costs incurred by the authority, or any client agency requesting financing of a project with respect to the acquisition, construction, or equipment of new facilities, for major repair or renovation of existing facilities, or other qualified project expenditure including, but not limited to, the costs of:                (A) the acquisition of all land, rights-of-way, property rights, easements, and interests;                 (B) all furnishings, machinery, and equipment;                 (C) necessary contingency funds;                 (D) architectural, engineering, and legal services;                 (E) plans, specifications, surveys, and estimates of cost and revenue, including a master plan;                 (F) contracts necessary or incident to determining the feasibility and practicability of a project;                 (G) administrative expenses of the authority which are necessary and related to a project to the extent provided by law; and                 (H) such other contracts as may be necessary or incident to the carrying out or start-up of any project, including the refunding or refinancing of any outstanding obligations, mortgages, or advances issued, made, or given by any person for any of the aforementioned costs; or                 (I) costs anticipated to be necessary to fund a program.        
       (27) Project fund--The fund created in financing documents for the payment of project costs.      
       (28) Regulations--The Income Tax Regulations promulgated pursuant to the Code.      
       (29) Revenue bond--A bond issued by the authority, the repayment of which depends on:                (A) the pledge of all or any part of the designated rents, issues, and profits from leasing the project to the State of Texas through the client agency; or                 (B) from any other source of funds lawfully available to the authority.        
       (30) TDCJ--The Texas Department of Criminal Justice, together with any successor to its duties and functions.      
     Source Note:        The provisions of this §221.2 adopted to be effective November 25, 1988, 13 TexReg 5749; amended to be effective December 15, 1998, 23 TexReg 12686; amended to be effective January 31, 2005, 30 TexReg 404; amended to be effective July 14, 2009, 34 TexReg 4641; amended to be effective April 25, 2013, 38 TexReg 2509