Texas Water Code 152.058 – Guarantee and Other Credit Support Relating to Public Securities and Other Obligations
(a) In this section, “public security” has the meaning assigned by Section 1202.001, Government Code.
(b) Under Section 52-a, Article III, Texas Constitution, a river authority that has created a corporation under Section 152.051 may guarantee or otherwise provide credit support for any public security or other obligation or contract of that corporation if the board of directors of the river authority determines that the guarantee or other credit agreement:
(1) is beneficial to a public purpose of the river authority; and
(2) is for the public purpose of:
(A) the development and diversification of the economy of the state;
(B) the elimination of unemployment or underemployment in the state; or
(C) the development or expansion of commerce in the state.
Terms Used In Texas Water Code 152.058
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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) A determination by the board of directors of a river authority under Subsection (b) is conclusive.
(d) A guarantee or other credit agreement authorized by Subsection (b) may provide for the guarantee of or other credit support for public securities or other obligations or contracts of the corporation, all or a portion of which may be authorized, executed, and delivered in the future.
(e) Chapter 1202, Government Code, applies to a guarantee or other credit agreement under this section as if the guarantee or other credit agreement were a public security.