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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of issuers to enter into contracts for |
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services in connection with the issuance of public securities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1371, Government Code, is amended by |
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adding Section 1371.0561 to read as follows: |
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Section 1371.0561. Advisor Required. An issuer shall |
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select a financial advisor to advise it in connection with the |
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execution and delivery of any credit agreement under this Chapter. |
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Any such financial advisor shall be a dealer or an investment |
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advisor registered pursuant to Article 581-12 or Article 581-12-1, |
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Tex. Rev. Civ. Stat., in either case that is subject to the rules of |
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the Municipal Securities Rulemaking Board, and that has experience |
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in providing advice to issuers in connection with the valuation of |
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credit agreements, and shall acknowledge in writing to the issuer |
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that it is acting as agent of the issuer in connection with the |
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transaction, and has complied with the rules of the Municipal |
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Securities Rulemaking Board in connection with its engagement by |
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the issuer, and will comply with those rules in connection with the |
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transaction for which it is engaged. |
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SECTION 2. This Act takes effect September 1, 2007. |