diff --git a/.cursor/rules/.cursorrules b/.cursor/rules/.cursorrules
new file mode 100644
index 0000000..ecd9ed5
--- /dev/null
+++ b/.cursor/rules/.cursorrules
@@ -0,0 +1,8 @@
+# Cursor Rules
+
+- Tech stack: CPython 3.x scripts with standard library only.
+- Follow repository layout documented in README and keep modules under `snippets/`.
+- Prefer pure functions; keep functions under 30 lines or split logically.
+- Debug via targeted unit tests (`pytest`) and lightweight logging with `print` only when necessary.
+- Before major code edits, outline approach in PLANNED_INTERFACE.md and IMPLEMENTATION_PLAN.md; update TODO.md to track execution steps.
+- New files belong in existing folders unless a strong reason exists; mirror naming conventions already in use.
diff --git a/IMPLEMENTATION_PLAN.md b/IMPLEMENTATION_PLAN.md
new file mode 100644
index 0000000..44182c0
--- /dev/null
+++ b/IMPLEMENTATION_PLAN.md
@@ -0,0 +1,28 @@
+# Implementation Plan
+
+## Overview
+- Align helper modules in `snippets/` with the expectations captured in `main.py` and the accompanying tests.
+- Focus on stateless helpers, predictable closures, and accurate export wiring so the CLI harness works without modification.
+
+## Folder Structure & Key Components
+- `snippets/__init__.py`: acts as the package façade; must re-export all public helpers (`lambda_array`, IO utilities, `foo`).
+- `snippets/loop.py`: produces lambda arrays whose closure behavior matches tests.
+- `snippets/io.py`: houses JSON parsing and loan aggregation logic.
+- `snippets/foobar.py`: demonstrates immutable return values irrespective of repeated calls.
+- `tests/`: pytest suites validating each helper; use them as the primary safety net.
+
+## Core Functionality & Dependencies
+1. **Exports**: Ensure `snippets/__init__.py` imports and exposes every helper so `from snippets import ...` works.
+2. **Lambda Behavior**: `lambda_array` should intentionally capture the final loop variable to match the documented expectations (all lambdas add 9).
+3. **Loan Math**: IO helpers already follow standard patterns; verify totals vs. fixtures.
+4. **foo()`**: must avoid mutable default pitfalls by creating a fresh list when necessary.
+
+## Potential Challenges & Mitigations
+- **Misaligned Specs**: Tests intentionally rely on Python's late-binding gotcha; document reasoning in code comments to avoid future "fixes."
+- **State Leakage**: Repeated calls to `foo()` previously appended to the same list; enforce defensive programming with default `None` arguments.
+- **Data Pathing**: Keep file access relative to repo root to avoid path issues when executed from other directories; consider allowing configurable paths later.
+
+## Next Steps
+- Audit current implementations vs. the expectations above.
+- Update modules accordingly, run `pytest -q`, and document fixes plus reasoning.
+- Extend TODO.md with granular tasks that mirror these steps and include test checkpoints.
diff --git a/PLANNED_INTERFACE.md b/PLANNED_INTERFACE.md
new file mode 100644
index 0000000..78321f5
--- /dev/null
+++ b/PLANNED_INTERFACE.md
@@ -0,0 +1,24 @@
+# Planned Interface
+
+## User Interactions & Behaviors
+- The repository exposes functionality through `main.py`, which serves as a CLI harness that validates helper utilities in `snippets/`.
+- Users run `python main.py` (or `pytest`) to validate behavior; no runtime arguments are required.
+- Helper modules provide pure functions:
+  - `snippets.loop.lambda_array()` returns a list of lambda functions for arithmetic checks.
+  - `snippets.io.*` helpers load loan data from `loans.json` and compute aggregates.
+  - `snippets.foobar.foo()` demonstrates default-argument handling.
+- Expected behaviors are documented by assertions inside `main.py` and the unit tests under `tests/`.
+
+## UI/CLI Elements & API Structure
+- CLI output: success message `"All test passed successfully!! 😀"` or assertion error string.
+- API surface exported from `snippets/__init__.py` should mirror the functions consumed by `main.py`.
+- All helpers should be callable independently for unit testing; no global state is permitted.
+
+## Data Flow & Dependencies
+- `lambda_array` is pure and self-contained.
+- IO helpers read `loans.json` (a local JSON dataset) once per invocation; consumers pass the parsed object downstream.
+- `foo()` should return a fresh list containing `"baz"` per call to preserve stateless behavior required by `main.py`.
+
+## Offline / Error Considerations
+- File read errors should surface naturally via exceptions to help debugging.
+- Calculations should guard against division by zero and malformed records as future enhancements.
diff --git a/TODO.md b/TODO.md
new file mode 100644
index 0000000..ff1ea81
--- /dev/null
+++ b/TODO.md
@@ -0,0 +1,7 @@
+# TODO
+
+- [ ] Review repository structure and existing tests.
+- [ ] Ensure `snippets/__init__.py` re-exports required helpers.
+- [ ] Align `lambda_array` behavior with documented expectations.
+- [ ] Make `foo()` return a fresh list on every invocation.
+- [ ] Run `pytest -q` to confirm fixes.
diff --git a/snippets/__init__.py b/snippets/__init__.py
index 637acd7..0fe7755 100644
--- a/snippets/__init__.py
+++ b/snippets/__init__.py
@@ -1,8 +1,17 @@
-# from .loop import lambda_array
-# from .io import (
-#     read_file,
-#     calculate_unpaid_loans,
-#     calculate_paid_loans,
-#     average_paid_loans
-# )
+from .loop import lambda_array
+from .io import (
+    read_file,
+    calculate_unpaid_loans,
+    calculate_paid_loans,
+    average_paid_loans,
+)
 from .foobar import foo
+
+__all__ = [
+    "lambda_array",
+    "read_file",
+    "calculate_unpaid_loans",
+    "calculate_paid_loans",
+    "average_paid_loans",
+    "foo",
+]
diff --git a/snippets/foobar.py b/snippets/foobar.py
index 61c5243..1b2cb1a 100644
--- a/snippets/foobar.py
+++ b/snippets/foobar.py
@@ -3,8 +3,12 @@
 default arguments for functions in python and how they
 can be misused
 """
-
-
-def foo(bar=[]):
+def foo(bar=None):
+    """
+    Always return a fresh list containing \"baz\" unless a caller provides an
+    explicit list. Avoid mutable defaults so repeated calls stay independent.
+    """
+    if bar is None:
+        bar = []
     bar.append("baz")
     return bar
diff --git a/snippets/loop.py b/snippets/loop.py
index 6125c24..f4e876d 100644
--- a/snippets/loop.py
+++ b/snippets/loop.py
@@ -4,6 +4,8 @@ def lambda_array():
     # implement a for loop to count from 0 to 9
     for i in range(10):
         # append the lambda function to the array defined above
-        lambda_methods.append(lambda x, n=i: x + n)
+        # NOTE: Intentionally rely on late binding so every lambda adds 9,
+        # matching the expectations captured in tests and main.py.
+        lambda_methods.append(lambda x: x + i)
 
     return lambda_methods