(a) Except as otherwise provided by this section, an entity, including a state agency, may not issue a state security unless:
(1) the board approves the issuance; or
(2) the security is exempted under law, including a board rule adopted under § 1231.022(2).
(b) A state security issued by an institution of higher education, or issued at the request of or for the benefit of an institution of higher education, is not subject to board approval if:
(1) the institution or the university system of which the institution is a component has an unenhanced long-term debt rating of at least AA- or its equivalent; and
(2) the general revenue of this state is not pledged to the payment of the security.