Texas Local Government Code 271.049 – Notice of Intention to Issue Certificates; Petition and Election
(a) Regardless of the sources of payment of certificates, certificates may not be issued unless the issuer publishes notice of its intention to issue the certificates. The notice must be published:
(1) once a week for two consecutive weeks in a newspaper, as defined by Subchapter C, Chapter 2051, Government Code, that is of general circulation in the area of the issuer, with the date of the first publication to be before the 45th day before the date tentatively set for the passage of the order or ordinance authorizing the issuance of the certificates; and
(2) if the issuer maintains an Internet website, continuously on the issuer’s website for at least 45 days before the date tentatively set for the passage of the order or ordinance authorizing the issuance of the certificates.
(b) The notice must state:
(1) the time and place tentatively set for the passage of the order or ordinance authorizing the issuance of the certificates;
(2) the purpose of the certificates to be authorized;
(3) the manner in which the certificates will be paid for, whether by taxes, revenues, or a combination of the two;
(4) the following:
(A) the then-current principal of all outstanding debt obligations of the issuer;
(B) the then-current combined principal and interest required to pay all outstanding debt obligations of the issuer on time and in full, which may be based on the issuer’s expectations relative to the interest due on any variable rate debt obligations;
(C) the maximum principal amount of the certificates to be authorized; and
(D) the estimated combined principal and interest required to pay the certificates to be authorized on time and in full;
(5) the estimated interest rate for the certificates to be authorized or that the maximum interest rate for the certificates may not exceed the maximum legal interest rate; and
(6) the maximum maturity date of the certificates to be authorized.
Terms Used In Texas Local Government Code 271.049
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Municipality: means a general-law municipality, home-rule municipality, or special-law municipality. See Texas Local Government Code 1.005
- Signed: includes any symbol executed or adopted by a person with present intention to authenticate a writing. See Texas Government Code 311.005
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.
- Week: means seven consecutive days. See Texas Government Code 311.005
(c) If before the date tentatively set for the authorization of the issuance of the certificates or if before the authorization, the municipal secretary or clerk if the issuer is a municipality, or the county clerk if the issuer is a county, receives a petition signed by at least five percent of the qualified voters of the issuer protesting the issuance of the certificates, the issuer may not authorize the issuance of the certificates unless the issuance is approved at an election ordered, held, and conducted in the manner provided for bond elections under Chapter 1251, Government Code.
(d) This section does not apply to certificates issued for the purposes described by Sections 271.056(1)-(4).
(e) In this section, “debt obligation” means a public security, as defined by § 1201.002, Government Code, secured by and payable from ad valorem taxes. The term does not include public securities that are designated as self-supporting by the political subdivision issuing the securities.