(a) The authority may use the proceeds of obligations issued under § 1232.104 to purchase, at a price determined by the authority, an obligation of an entity described by § 1232.104(a) that evidences the entity’s obligation to repay the authority. Notwithstanding any other law, the authority may acquire an obligation of an entity described by § 1232.104(a) in a private sale as provided by resolution or order of the governing body of the entity.
(b) An entity described by § 1232.104(a) may borrow from the authority by selling an obligation to the authority.

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Terms Used In Texas Government Code 1232.107

  • 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.