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Texas Laws | Government Code
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (74696)

Sec. 1204.005. COMPUTATION OF NET EFFECTIVE INTEREST RATE. (74697)(Text)

(a) The net effective interest rate of an issue or series of public securities is computed by dividing the net interest cost of the issue or series by the aggregate total number of public security years of all public securities that comprise the issue or series and expressing the result as a rate of interest in percent per year. (74698)

(b) In computing the net effective interest rate of an issue or series of public securities that includes one or more public securities on which interest accruing before the maturity of the public security is compounded, the public security years with reference to each separate compounding public security are increased by an amount obtained by dividing the amount of interest that is periodically compounded by 100 and multiplying the resulting quotient by the number of years from the date on which interest begins to accrue on the amount that is being compounded to: (74699)

(1) the scheduled date for payment of the amount that is being compounded; or (74700)

(2) with respect to a floating rate public security, the date interest on the public security is next computed, if that date is earlier than the scheduled date for payment of the amount that is being compounded. (74701)

(c) For purposes of this chapter, interest compounded under Subsection (b) is considered as principal. (74702)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (74703)

Sec. 1204.006. MAXIMUM INTEREST RATE. (74704)(Text)

(a) The maximum rate of interest for any issue or series of public securities, including an issue or series that is issued in exchange for property, labor, services, materials, or equipment under another law, is a net effective interest rate of 15 percent. (74705)

(b) Except as provided by Section 1204.007, a public agency may issue and sell any issue or series of its public securities at any price and bearing interest at any rate or rates determined by the agency's governing body that does not exceed the maximum rate under Subsection (a). (74706)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (74707)

Sec. 1204.007. MAXIMUM INTEREST RATE FOR CERTAIN PUBLIC SECURITIES. (74708)(Text)

(a) Public securities authorized by an election held before April 15, 1981, may be issued, may be sold, and may bear interest as provided by Section 1204.006, except that public securities authorized by an election required by the constitution of this state may not be issued at an interest rate greater than the rate authorized at that election unless an additional election is held at which the issuance of the public securities at a price and at a rate authorized by Section 1204.006 is approved. (74709)

(b) A public agency shall hold and give notice of an additional election under Subsection (a) in the manner provided by law applicable to the election that authorized the public securities. (74710)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (74711)

CHAPTER 1205. PUBLIC SECURITY DECLARATORY JUDGMENT ACTIONS (74712)(Text)
Sec. 1205.001. DEFINITIONS. (74713)(Text)

In this chapter: (74714)

(1) "Issuer" means an agency, authority, board, body politic, commission, department, district, instrumentality, municipality or other political subdivision, or public corporation of this state. The term includes a state-supported institution of higher education and any other type of political or governmental entity of this state. (74715)

(2) "Public security" means an interest-bearing obligation, including a bond, bond anticipation note, certificate, note, warrant, or other evidence of indebtedness, regardless of whether the obligation is: (74716)

(A) general or special; (74717)

(B) negotiable; (74718)

(C) in bearer or registered form; (74719)

(D) in temporary or permanent form; (74720)

(E) issued with interest coupons; or (74721)

(F) to be repaid from taxes, revenue, both taxes and revenue, or in another manner. (74722)

(3) "Public security authorization" means an action or proceeding by an issuer taken, made, or proposed to be taken or made in connection with or affecting a public security. (74723)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (74724)

Sec. 1205.002. CONFLICT OR INCONSISTENCY WITH OTHER LAWS. (74725)(Text)

(a) To the extent of a conflict or inconsistency between this chapter and another law, this chapter controls. (74726)

(b) This chapter does not prohibit an issuer from applying to the Texas Supreme Court for a writ of mandamus to the attorney general for the approval of a bond, and the court is authorized to issue the writ. (74727)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (74728)

SUBCHAPTER B. DECLARATORY JUDGMENT ACTION (74729)(Text)
Sec. 1205.021. AUTHORITY TO BRING ACTION. (74730)(Text)

An issuer may bring an action under this chapter to obtain a declaratory judgment as to: (74731)

(1) the authority of the issuer to issue the public securities; (74732)

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