Texas § GV.489.253 - REVENUE-BASED BONDS AUTHORIZED

§ GV.489.253. REVENUE-BASED BONDS AUTHORIZED

REVENUE-BASED BONDS AUTHORIZED. (a) The bank, the office, or the office's successor agency may provide for the issuance, sale, and retirement of bonds, including obligations in the form of commercial paper notes, to provide funding for economic development purposes as authorized by Section 52-a , Article III, Texas Constitution, and this subchapter. (b) The bonds are special obligations of the bank and the principal of and interest on the bonds must be payable solely from the revenues derived by the bank under this subchapter, including loan repayments secured by a pledge of the local economic development sales and use tax revenues imposed by municipalities for the benefit of economic development corporations created under Chapters 504 and 505 , Local Government Code. The bonds do not constitute an indebtedness of this state, the office, or the bank in the meaning of the Texas Constitution or of any statutory limitation. The bonds do not constitute a pecuniary liability of this state, the office, or the bank or constitute a charge against the general credit of this state, the office, or the bank, or against the taxing power of this state. The limitations provided by this subsection must be stated plainly on the face of each bond. (c) The executive director of the office by resolution may provide for the bonds to: (1) be executed and delivered at any time in one or more series as a single issue or as several issues; (2) be in any denomination and form, including registered uncertificated bonds not represented by written instruments and commonly known as book-entry obligations, the registration of ownership and transfer of which the bank shall provide for under a system of books and records maintained by a financial institution serving as trustee, paying agent, or bond registrar; (3) be of a term authorized by the executive director, not to exceed 40 years from their date; (4) be in coupon or registered form; (5) be payable in installments and at a time or times not exceeding the term authorized by applicable law; (6) be subject to terms of redemption; (7) be payable at a place or places; (8) bear no interest or bear interest at any rate or rates, fixed, variable, floating, or otherwise determined by the bank or determined under a contractual arrangement approved by the executive director, except that the maximum net effective interest rate, computed in accordance with Section 1204.005 , on the bonds may not exceed a rate equal to the maximum annual interest rate established by Section 1204.006 ; and (9) contain provisions not inconsistent with this subchapter. (d) Bonds issued under this section are subject to review and approval by the attorney general in the same manner and with the same effect as may be required by law, including Chapter 1202 or 1371 , as applicable. (e) This state pledges to and agrees with the owners of any bonds issued under this section that this state will not limit or alter the rights vested in the bank to fulfill the terms of any agreements made with an owner or in any way impair the rights and remedies of an owner until the bonds, together with any premium and the interest on the bonds, with interest on any unpaid premium or installments of interest, and all costs and expenses in connection with any action or proceeding by or on behalf of the owners, are fully met and discharged. The bank may include this pledge and agreement of this state in any agreement with the owners of the bonds. Added by Acts 2021, 87th Leg., R.S., Ch. 947 (S.B. 1465 ), Sec. 1, eff. June 18, 2021.