Sec. 53.40. APPROVAL OF BONDS; REGISTRATION; NEGOTIABILITY. (a) Bonds issued under this chapter and the record relating to their issuance shall be submitted to the attorney general, and if the attorney general finds that they have been issued in accordance with this chapter and constitute valid and binding obligations of the authority and are secured as recited therein, the attorney general shall approve them, and they shall be registered by the comptroller of public accounts, who shall certify the registration thereon. Thereafter they are incontestable. The bonds shall be negotiable and shall contain the following provision: "The holder hereof shall never have the right to demand payment thereof out of money raised or to be raised by taxation." If the attorney general does not find that the bonds have been issued in accordance with this chapter and constitute valid and binding obligations of the authority and are secured as recited therein, the attorney general may not approve the bonds, and the bonds may not be registered by the comptroller.
(b) When bonds to be issued to benefit an institution of higher education and the record relating to their issuance are submitted to the attorney general, the authority shall deliver notice of that action to the governor, the lieutenant governor, the speaker of the house of representatives, and the Legislative Budget Board. The notice must include the amount of the bonds to be issued and a description of the facilities to be financed from the bond proceeds.
(c) The attorney general has sole authority to review the record of public notice and hearings relating to any bond financing an educational facility for an authorized charter school, and the attorney general may issue an approval as required by Section 147(f), Internal Revenue Code of 1986.
Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff. Sept. 1, 1971.
Reenacted and amended by Acts 2005, 79th Leg., Ch. 641 (H.B. 2701), Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 849 (S.B. 2240), Sec. 2, eff. June 19, 2009.
Acts 2019, 86th Leg., R.S., Ch. 1193 (H.B. 4258), Sec. 1, eff. June 14, 2019.
Structure Texas Statutes
Subtitle A - Higher Education in General
Chapter 53 - Higher Education Facility Authorities for Public Schools
Subchapter C. Powers and Duties
Section 53.31. No Taxing Power
Section 53.32. No Power of Eminent Domain
Section 53.33. Limited Power to Acquire, Own, and Operate Educational and Housing Facilities
Section 53.331. Refinancing Facilities
Section 53.35. Issuance of Bonds; Procedure; Etc
Section 53.351. Bonds for Open-Enrollment Charter School Facilities
Section 53.352. Limitation on Liability of Corporation
Section 53.36. Bond Resolution; Notice; Election
Section 53.37. Junior Lien Bonds; Parity Bonds
Section 53.38. Reserves for Operating and Other Expenses
Section 53.39. Refunding Bonds
Section 53.40. Approval of Bonds; Registration; Negotiability
Section 53.41. Authorized Investments
Section 53.42. Investment of Funds; Security
Section 53.44. Operation of Facilities; Rates Charged; Reserve Funds
Section 53.45. Transactions With Other Agencies and Persons