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A BILL TO BE ENTITLED
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AN ACT
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relating to credit agreements executed in connection with the |
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issuance of obligations for certain public improvements. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1371.001(1), Government Code, is amended |
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to read as follows: |
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(1) "Credit agreement" means a loan agreement, |
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revolving credit agreement, agreement establishing a line of |
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credit, letter of credit, reimbursement agreement, insurance |
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contract, commitment to purchase obligations, purchase or sale |
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agreement, interest rate management agreement, or other commitment |
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or agreement, including a contract or agreement of the governing |
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body of an issuer to provide, use, or pledge any of the issuer's |
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available revenues, resources, or assets, authorized by a governing |
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body in anticipation of, related to, or in connection with the |
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authorization, issuance, sale, resale, security, exchange, |
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payment, purchase, remarketing, or redemption of some or all of an |
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issuer's obligations or interest on obligations, or both, or as |
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otherwise authorized by this chapter. |
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SECTION 2. Section 1371.053, Government Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) The governing body of an issuer that intends to purchase |
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an obligation with the issuer's own funds must adopt and include in |
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the obligation authorization a finding that the body is not |
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purchasing the obligation in order to extinguish the obligation. |
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SECTION 3. Sections 1371.056(d) and (e), Government Code, |
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are amended to read as follows: |
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(d) The cost to the issuer of a credit agreement or payments |
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owed by an issuer under a credit agreement may be paid from and |
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secured by any source, including: |
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(1) the proceeds from the sale of the obligation to |
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which the credit agreement relates; |
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(2) any revenue and money of the issuer that is |
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available to pay the obligation; |
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(3) any interest on the obligation or that may |
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otherwise be legally used; [or] |
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(4) ad valorem taxes if the credit agreement is |
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authorized in anticipation of, in relation to, or in connection |
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with an obligation that is wholly or partly payable from or is to be |
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wholly or partly payable from ad valorem taxes; or |
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(5) the issuer's available revenues, resources, and |
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assets, to the extent that the issuer has executed a credit |
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agreement consisting solely of the issuer's revenues, resources, |
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and assets. |
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(e) Except for a credit agreement that may be paid and |
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secured as provided under Subsection (d)(5), a [A] credit agreement |
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is an agreement for professional services but is not a contract |
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subject to Subchapter I, Chapter 271, Local Government Code. |
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SECTION 4. Subchapter D, Chapter 1371, Government Code, is |
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amended by adding Section 1371.156 to read as follows: |
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Sec. 1371.156. AFFIDAVIT OF COMPLIANCE. Before the |
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attorney general may approve an interest rate management agreement |
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under Section 1371.057, the issuer must submit an affidavit to the |
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attorney general stating that the issuer has complied with Section |
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1371.056(j) and this subchapter. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |