Texas Government Code 4005.055 – Commercial Paper
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Terms Used In Texas Government Code 4005.055
- Month: means a calendar month. See Texas Government Code 312.011
- 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.
The exemption provided by § 4005.051 applies to:
(1) commercial paper that:
(A) arises out of a current transaction or the proceeds of which have been or are to be used for current transactions; and
(B) evidences an obligation to pay cash not later than the ninth month after the issuance date of the commercial paper, not including days of grace;
(2) a renewal of commercial paper described by Subdivision (1) that is similarly limited; or
(3) a guarantee of commercial paper described by Subdivision (1) or of a renewal described by Subdivision (2).