Texas § UT.163.089 - PUBLIC SECURITIES

§ UT.163.089. PUBLIC SECURITIES

PUBLIC SECURITIES. (a) It is a public purpose for a public entity that has participated in the creation of an agency to pay costs of planning, acquisition, construction, ownership, operation, and maintenance of electric facilities. (b) A public entity may issue public securities, as defined by Section 1201.002 (2), Government Code, including bonds, notes, or other forms of indebtedness, in the principal amount approved by the governing body of the public entity, for the purpose of financing electric facilities or improvements to electric facilities to be owned or operated by the agency or otherwise in furtherance of a purpose described by this section. (c) A public entity and an agency may agree in a contract, or by other official action of the public entity and agency, to terms and conditions governing the use by the agency of the proceeds of the public securities issued by a public entity for a purpose described by this section. (d) A contract or other official action described by Subsection (c) may include provisions with respect to, and conclusively establish sufficient consideration for, the use of the proceeds. The consideration may include the right to: (1) use the financed facilities or portions of the facilities; (2) receive output from the financed facilities; or (3) receive an ownership interest in the financed facilities upon the dissolution of the agency or an undivided interest in the financed facilities at the time a public entity funds facility improvements. (e) A contract or other official action described by Subsection (c) may contain other terms and extend for any period on which all of the parties agree. (f) A public security issued for the purposes described by this section may include: (1) debt obligations issued in accordance with Chapter 1207 , 1331 , 1371 , 1431 , or 1502 , Government Code, or Chapter 271 , Local Government Code; or (2) other types or forms of debt that the public entity is authorized to issue. (g) Each participating public entity may exercise any power of an issuer under Chapter 1371 , Government Code. Added by Acts 2015, 84th Leg., R.S., Ch. 1162 (S.B. 776 ), Sec. 3, eff. September 1, 2015.