Texas Election Code 3.009 – Contents of Debt Obligation Election Order
(a) In this section, “debt obligation” means an issued public security, as defined by Section 1201.002, Government Code, that is secured by and payable from ad valorem taxes. The term does not include public securities that are designated as self-supporting by the political subdivision issuing the securities.
(b) The document ordering an election to authorize a political subdivision to issue debt obligations must distinctly state:
(1) the proposition language that will appear on the ballot;
(2) the purpose for which the debt obligations are to be authorized;
(3) the principal amount of the debt obligations to be authorized;
(4) that taxes sufficient to pay the principal of and interest on the debt obligations may be imposed;
(5) a statement of the estimated tax rate if the debt obligations are authorized or of the maximum interest rate of the debt obligations or any series of the debt obligations, based on the market conditions at the time of the election order;
(6) the maximum maturity date of the debt obligations to be authorized or that the debt obligations may be issued to mature over a specified number of years not to exceed the maximum number of years authorized by law;
(7) the aggregate amount of the outstanding principal of the political subdivision’s debt obligations as of the date the election is ordered;
(8) the aggregate amount of the outstanding interest on debt obligations of the political subdivision as of the date the election is ordered, which may be based on the political subdivision’s expectations relative to variable rate debt obligations; and
(9) the ad valorem debt service tax rate for the political subdivision at the time the election is ordered, expressed as an amount per $100 valuation of taxable property.
Terms Used In Texas Election Code 3.009
- 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
- Law: means a constitution, statute, city charter, or city ordinance. See Texas Election Code 1.005
- Political subdivision: means a county, city, or school district or any other governmental entity that:
(A) embraces a geographic area with a defined boundary;
(B) exists for the purpose of discharging functions of government; and
(C) possesses authority for subordinate self-government through officers selected by it. See Texas Election Code 1.005 - Property: means real and personal property. See Texas Government Code 311.005
- Proposition: means the wording appearing on a ballot to identify a measure. See Texas Election Code 1.005
- Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.