(a) The authority shall not issue a public security to finance any project or cost related thereto, unless:      
        (1) the project has been specifically authorized by the Act, the General Appropriations Act, or other applicable law;       
        (2) the board has approved the request for financing and has determined to proceed with the issuance of public securities;       
        (3) the governing body of the client agency requesting such financing has authorized the execution of a memorandum of understanding between the client agency and the authority relating to the specific public securities program and has agreed to necessary financing documents as may be appropriate and consistent with these sections;       
        (4) the public securities issuance and the projects have been reviewed and approved by the Bond Review Board or any other agency required to review such bond proceedings or approve projects as authorized by law;       
        (5) the governing body of the client agency has by resolution authorized the execution and performance of the financing documents; and       
        (6) the board has approved the related financing documents.       
      (b) In the event proceeds are to be used to finance a project of the TDCJ, the TDCJ must have submitted to the Bond Review Board a master plan for correctional facilities prior to disbursement of bond proceeds.     
      (c) The authority assumes no responsibility in connection with the eligibility of any specific project for financing nor with respect to the need for such project or that any project will comply with any legal requirement, except to review legislation authorizing the project, the approval process with respect to the project, including Bond Review Board approvals, and to provide a proper description of the project in bond offering documents, if required.     
      (d) The authority may request the assistance of the client agency in complying with information requests from the Bond Review Board, rating agencies, the attorney general, financial advisor, bond counsel, or other requests required for issuance of the bonds.     
     Source Note:        The provisions of this §221.4 adopted to be effective November 25, 1988, 13 TexReg 5749; amended to be effective December 15, 1998, 23 TexReg 12686; amended to be effective July 14, 2009, 34 TexReg 4641; amended to be effective April 25, 2013, 38 TexReg 2509