Section 12.3 - Bond Rating and Investment Letter(a) Bond Ratings. All publicly offered Bonds issued by the Department to finance Developments shall have a debt rating the equivalent of at least an "A" rating assigned to long-term obligations by Standard & Poor's Ratings Services, or Moody's Investors Service, Inc. If such rating is based upon credit enhancement provided by an institution other than the Applicant or Development Owner, the form and substance of such credit enhancement shall be subject to approval by the Board, evidenced by a resolution authorizing the issuance of the credit enhanced Bonds.(b) Investment Letters. Bonds rated less than "A" or Bonds which are unrated must be placed with one or more Institutional Buyers and must be accompanied by an investor letter acceptable to the Department. Subsequent purchasers of such Bonds must also be qualified as Institutional Buyers and must execute and deliver to the Department an investor letter in a form satisfactory to the Department. Bonds rated less than "A" and Bonds which are unrated shall be issued in physical form, in minimum denominations of one hundred thousand dollars ($100,000), and must carry a legend requiring any purchasers of the Bonds to be Institutional Buyers and sign and deliver to the Department an investor letter in a form acceptable to the Department.10 Tex. Admin. Code § 12.3
The provisions of this §12.3 adopted to be effective January 8, 2013, 38 TexReg 128; amended by Texas Register, Volume 40, Number 01, January 2, 2015, TexReg 59, eff. 1/8/2015; Adopted by Texas Register, Volume 41, Number 01, January 1, 2016, TexReg 237, eff. 1/7/2016; Adopted by Texas Register, Volume 41, Number 53, December 30, 2016, TexReg 10586, eff. 1/4/2017; Adopted by Texas Register, Volume 42, Number 52, December 29, 2017, TexReg 7667, eff. 1/4/2018; Amended by Texas Register, Volume 43, Number 49, December 7, 2018, TexReg 7886, eff. 12/10/2018; Adopted by Texas Register, Volume 44, Number 47, November 22, 2019, TexReg 7164, eff. 11/28/2019; Adopted by Texas Register, Volume 45, Number 47, November 20, 2020, TexReg 8313, eff. 11/26/2020; Adopted by Texas Register, Volume 46, Number 48, November 26, 2021, TexReg 8036, eff. 12/2/2021; Adopted by Texas Register, Volume 47, Number 47, November 25, 2022, TexReg 7867, eff. 12/4/2022; Adopted by Texas Register, Volume 48, Number 47, November 24, 2023, TexReg 6896, eff. 11/30/2023; Adopted by Texas Register, Volume 49, Number 47, November 22, 2024, TexReg 9500, eff. 11/27/2024