Sec. 223.026. FORM AND TERM OF BONDS. (a) The issuer shall determine the form of the bonds, the date of the bond issue, the price and interest rate of the bonds, and the maturity for the bonds, which may not be more than 40 years after its date.
(b) The issuer may:
(1) make the bonds redeemable before maturity and determine the prices and conditions for early redemption;
(2) determine:
(A) the interest coupons to be attached to the bonds;
(B) the denominations of the bonds; and
(C) the places of payment of the bonds' principal, any redemption premium, and interest;
(3) issue the bonds in coupon or in registered form, or both;
(4) make the bonds payable to a specific person;
(5) provide for the registration of coupon bonds as to principal or as to principal and interest; and
(6) provide for the conversion of coupon bonds into registered bonds without coupons and for the reconversion into coupon bonds of any registered bonds without coupons.
(c) If the duty of conversion or reconversion of a bond is imposed on a trustee in a trust agreement, the substituted bonds need not be reapproved by the attorney general, and the bonds remain incontestable.
(d) The issuer may provide for execution of the bonds and any coupons using a facsimile signature under Chapter 618, Government Code. If the signature or a facsimile signature of a person who has been an officer appears on a bond or coupon, the signature or facsimile signature is valid and sufficient for all purposes, regardless of whether the person is an officer when the bonds are delivered.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.251, eff. Sept. 1, 2001.
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