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Texas Laws | Government Code

(2) "Issuer" and "public security" have the meanings assigned by Section 1202.001. (75151)

(3) "Security agreement" means a resolution, order, ordinance, or agreement that creates a security interest with respect to a public security or a credit agreement. (75152)

(4) "Security interest" means a pledge of, lien on, or other interest in taxes, revenue, receipts, funds, or other personal property or fixtures that secures payment or performance of public securities or a credit agreement. (75153)

Added by Acts 2001, 77th Leg., ch. 24, Sec. 1, eff. July 1, 2001. (75154)

Sec. 1208.002. PLEDGE OF SECURITY. (75155)(Text)

(a) A security interest created by an issuer by means of a security agreement: (75156)

(1) is valid and effective according to the terms of the security agreement as to all property of the governmental unit stated to be covered by the security agreement, whether: (75157)

(A) held at the time the security agreement is entered into or adopted; or (75158)

(B) later acquired or received; (75159)

(2) except as provided by Subsection (c), is perfected from the time the security agreement is entered into or adopted continuously through the termination of the security interest, in accordance with its terms, without physical delivery or transfer of control of the property, filing of a document, or another act; (75160)

(3) ranks as to priority in order of the time of perfection, except as otherwise provided by the security agreement; and (75161)

(4) may be enforced as provided by the security agreement or the law that authorizes the security agreement. (75162)

(b) The rights of a lien creditor as defined by Section 9.102(a), Business & Commerce Code, are subordinate to a perfected security interest described by Subsection (a). (75163)

(c) A security interest in real property is perfected when the security agreement, a memorandum of the security agreement, or other instrument creating the security interest is duly recorded in the real property records of the county in which the property is located. (75164)

(d) This section does not: (75165)

(1) create or exempt an issuer from a duty to submit public securities to the attorney general for approval and registration by the comptroller; or (75166)

(2) authorize an issuer to enter into or adopt a security agreement. (75167)

Added by Acts 2001, 77th Leg., ch. 24, Sec. 1, eff. July 1, 2001. (75168)

Sec. 1208.003. PREEMPTION. (75169)(Text)

This chapter is a statute described by Section 9.109(c)(2), Business & Commerce Code, and an issuer is considered to be a governmental unit for purposes of that section. (75170)

Added by Acts 2001, 77th Leg., ch. 24, Sec. 1, eff. July 1, 2001. (75171)


Sec. 1231.001. DEFINITIONS. (75174)(Text)

In this chapter: (75175)

(1) "Board" means the Bond Review Board. (75176)

(1-a) "Interest rate management agreement" means an agreement that provides for an interest rate transaction, including a swap, basis, forward, option, cap, collar, floor, lock, or hedge transaction, for a transaction similar to those types of transactions, or for a combination of any of those types of transactions. The term includes: (75177)

(A) a master agreement that provides standard terms for transactions; (75178)

(B) an agreement to transfer collateral as security for transactions; and (75179)

(C) a confirmation of transactions. (75180)

(2) "State security" means: (75181)

(A) an obligation, including a bond, issued by: (75182)

(i) a state agency; (75183)

(ii) an entity that is expressly created by statute and has statewide jurisdiction; or (75184)

(iii) an entity issuing the obligation on behalf of this state or on behalf of an entity described by Subparagraph (i) or (ii); (75185)

(B) an installment sale or lease-purchase obligation that is issued by or on behalf of an entity described by Paragraph (A) and that has: (75186)

(i) a stated term of more than five years; or (75187)

(ii) an initial principal amount of more than $250,000; or (75188)

(C) an obligation, including a bond, that is issued under Chapter 53, Education Code, at the request of or for the benefit of an institution of higher education other than a public junior college. (75189)

(3) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code. (75190)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (75191)

Amended by: (75192)

Acts 2007, 80th Leg., R.S., Ch. 991 (S.B. 1332), Sec. 2, eff. September 1, 2007. (75193)

Acts 2007, 80th Leg., R.S., Ch. 991 (S.B. 1332), Sec. 3, eff. September 1, 2007. (75194)

Acts 2011, 82nd Leg., R.S., Ch. 1049 (S.B. 5), Sec. 1.05, eff. June 17, 2011. (75195)


This chapter does not affect the right of an issuer of state securities to select its own bond counsel, underwriter, financial advisor, or other service provider in connection with the issuance of state securities. (75197)

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