(a) Unless otherwise indicated herein, proceeds of bonds shall be distributed pursuant to the terms of the financing documents.
(b) Upon the closing of each series of bonds, the purchasers thereof shall pay the proceeds thereof in immediately available funds to the authority, a corporate trustee, or depository account designated by the client agency and specified in the financing documents.
(c) The executive director shall certify to the client agency requesting such financing that the funds are available and, if bond proceeds must be deposited to the Texas state treasury, to the comptroller that such funds have been deposited with the comptroller for the purpose of financing the related project.
(d) The authority will process vouchers for payment of costs of issuance. The client agency will process vouchers for payment of project costs.
(e) The client agency requesting financing from the authority shall pay project costs from the project fund in accordance with the contracts therefore and shall provide a written monthly report to the authority of the activity on each project in compliance with the reporting provisions of the financing documents. The authority will not assume any responsibility for the actual acquisition, construction, equipment, repair, or renovation of any project or the operation or maintenance thereof, but the authority may inspect projects at reasonable times upon reasonable notice to the client agency.
(f) No payments from the project fund may be made for any purpose other than paying costs of issuance and project costs, depositing amounts to any rebate fund for the benefit of the federal government in compliance with the Code, or deposit to the debt service fund of amounts remaining after payment of project costs.
(g) If any proceeds of the bonds remain in the project fund after the completion of a project and depositing amounts to any rebate fund for the benefit of the federal government in compliance with the Code, except the amounts specified by the client agency requesting such financing from the authority to be retained for any amount of any project costs not then due and payable or the liability for payment of which is being contested or disputed by the qualified agency and all labor, services, materials, and supplies used in the project have been fully paid and all costs and expenses incurred in connection therewith have been paid, then the client agency requesting such financing from the authority shall notify the authority that such proceeds are to be transferred from the project fund to the debt service fund; provided, however, that if the legislature has authorized additional projects of the same nature as the project theretofore financed during such time period, the board may, by formal resolution and if permitted by law, authorize the use of such amounts for such additional projects.
(h) If the bonds are intended by the board to bear interest which is not includable in gross income of the recipient pursuant to the Code, the use of proceeds of the bonds shall be restricted in such manner and to such extent, as may be necessary, to obtain and retain such tax exemption, in accordance with the Code and Regulations.
(i) The plans and specifications will be on file at the client agency and available at all times for inspection by the authority.

Source Note: The provisions of this §221.5 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