Texas Government Code 2306.351 – Issuance of Bonds
(a) The department may issue bonds under this chapter, including qualified 501(c)(3) bonds under Section 145, Internal Revenue Code of 1986 (26 U.S.C. § 145), and may:
(1) provide for and secure payment of the bonds;
(2) provide for the rights of the holders of the bonds, as permitted by this chapter and the Texas Constitution; and
(3) purchase, hold, cancel, resell, or otherwise dispose of its bonds, subject to restrictions in a resolution authorizing issuance of its bonds.
(b) In connection with or incidental to issuing and selling its bonds, the department may enter into contracts that the board considers necessary or appropriate for the department’s obligation, as represented by the bonds and incidental contracts, to be placed, in whole or in part, on the basis desired by the board, including interest rate, currency, or cash flow.
Terms Used In Texas Government Code 2306.351
- Contract: A legal written agreement that becomes binding when signed.
- 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
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(c) Contracts that may be entered into under Subsection (b) include contracts:
(1) commonly known as interest rate swap agreements, currency swap agreements, or forward payment conversion agreements;
(2) providing for payments based on levels of or changes in interest rates or currency exchange rates;
(3) to exchange cash flows or a series of payments; or
(4) that include options, puts or calls to hedge payment, currency, rate, spread, or similar exposure.
(d) A contract entered into under this section shall be on terms and conditions approved by the board.