Texas Government Code 1403.002 – General Obligation Bonds and Notes for Border Colonia Roadway Projects
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(a) As provided by § 49-l, Article III, Texas Constitution, the authority shall, in accordance with requests from the office of the governor:
(1) issue general obligation bonds and notes in an aggregate amount not to exceed $175 million, as authorized by the office of the governor under Subsection (b); and
(2) as directed by the Texas Department of Transportation, distribute the proceeds from the sale of the bonds and notes to counties to provide financial assistance for colonia access roadway projects to serve border colonias.
(b) The office of the governor shall determine the amount of bonds or notes to be issued at any one time by the authority under Subsection (a)(1) and the times at which the bonds or notes are issued.
Terms Used In Texas Government Code 1403.002
- 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
- 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.
- Rule: includes regulation. See Texas Government Code 311.005
(c) The commission shall establish a program to administer the use of the proceeds of the bonds and notes. The Texas Department of Transportation shall administer the program in cooperation with the office of the governor, the secretary of state, and the Texas A&M University Center for Housing and Urban Development.
(d) The commission, in cooperation with the office of the governor, shall:
(1) define by rule “border colonia” as a geographic area that consists of 11 or more dwellings that are located in close proximity to each other in an area that may be described as a community or neighborhood and subject to any other criteria considered appropriate by the commission and the office of the governor;
(2) establish by rule criteria for selecting which areas and which colonia access roadway projects are eligible for assistance under this chapter;
(3) determine the counties and the colonia access roadway projects that are to receive financial assistance and the amount of assistance given to a county or project;
(4) establish by rule minimum road standards a county’s colonia access roadway proposal must meet to be awarded a grant;
(5) establish by rule grant application procedures; and
(6) establish by rule financial reporting requirements for counties that receive assistance for colonia access roadway projects to serve border colonias.
(e) The issuance of general obligation bonds under this chapter shall comply with and is subject to Subtitle A, of this title, Chapter 1231, and applicable provisions of Chapters 1232 and 1371.
(f) In connection with bonds or notes issued under this section, the authority may enter into one or more credit agreements at any time for a period and on conditions the authority approves. For purposes of this subsection, “credit agreement” includes:
(1) an interest rate swap agreement;
(2) an interest rate lock agreement;
(3) a currency swap agreement;
(4) a forward payment conversion agreement;
(5) an agreement to provide payments based on levels of or changes in interest rates or currency exchange rates;
(6) an agreement to exchange cash flows or a series of payments;
(7) an option, put, or call to hedge payment, currency, rate, spread, or other exposure; or
(8) another agreement that enhances the marketability, security, or creditworthiness of bonds or notes.