CHAPTER 1208. SECURITY FOR PUBLIC SECURITIES
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES
SUBTITLE A. GENERAL PROVISIONS
CHAPTER 1208. SECURITY FOR PUBLIC SECURITIES
Sec. 1208.001. DEFINITIONS. In this chapter:
(1) "Credit agreement" means any agreement authorized by a
governing body of an issuer in connection with or related to the
authorization, issuance, sale, resale, security, exchange,
payment, purchase, remarketing, or redemption of a public
security, interest on a public security, or both. The term
includes any agreement relating to public securities that is
defined or described in state law as a "credit agreement" or a
"bond enhancement agreement."
(2) "Issuer" and "public security" have the meanings assigned by
Section 1202.001.
(3) "Security agreement" means a resolution, order, ordinance,
or agreement that creates a security interest with respect to a
public security or a credit agreement.
(4) "Security interest" means a pledge of, lien on, or other
interest in taxes, revenue, receipts, funds, or other personal
property or fixtures that secures payment or performance of
public securities or a credit agreement.
Added by Acts 2001, 77th Leg., ch. 24, Sec. 1, eff. July 1, 2001.
Sec. 1208.002. PLEDGE OF SECURITY. (a) A security interest
created by an issuer by means of a security agreement:
(1) is valid and effective according to the terms of the
security agreement as to all property of the governmental unit
stated to be covered by the security agreement, whether:
(A) held at the time the security agreement is entered into or
adopted; or
(B) later acquired or received;
(2) except as provided by Subsection (c), is perfected from the
time the security agreement is entered into or adopted
continuously through the termination of the security interest, in
accordance with its terms, without physical delivery or transfer
of control of the property, filing of a document, or another act;
(3) ranks as to priority in order of the time of perfection,
except as otherwise provided by the security agreement; and
(4) may be enforced as provided by the security agreement or the
law that authorizes the security agreement.
(b) The rights of a lien creditor as defined by Section
9.102(a), Business & Commerce Code, are subordinate to a
perfected security interest described by Subsection (a).
(c) A security interest in real property is perfected when the
security agreement, a memorandum of the security agreement, or
other instrument creating the security interest is duly recorded
in the real property records of the county in which the property
is located.
(d) This section does not:
(1) create or exempt an issuer from a duty to submit public
securities to the attorney general for approval and registration
by the comptroller; or
(2) authorize an issuer to enter into or adopt a security
agreement.
Added by Acts 2001, 77th Leg., ch. 24, Sec. 1, eff. July 1, 2001.
Sec. 1208.003. PREEMPTION. This chapter is a statute described
by Section 9.109(c)(2), Business & Commerce Code, and an
issuer is considered to be a governmental unit for purposes of
that section.
Added by Acts 2001, 77th Leg., ch. 24, Sec. 1, eff. July 1, 2001.