Sec. 1231.023. DEBT ISSUANCE POLICIES AND GUIDELINES. (a) The board shall adopt debt issuance policies to guide issuers of state securities and to ensure that state debt is prudently managed. The policies must be sufficiently flexible to allow the state and issuers of state securities to respond to changing economic conditions.
(b) The board shall consult with issuers of state securities in developing the policies.
(c) The board shall adopt policies that:
(1) provide a mechanism for evaluating the amount of state debt that can be managed prudently;
(2) address opportunities to consolidate debt authority;
(3) include guidelines for:
(A) appropriate levels of reserves;
(B) the types of state security that should be issued under various circumstances; and
(C) the terms or structure of a state security;
(4) help the board and issuers of state securities to evaluate:
(A) the potential risks involved in the issuance of a state security or in the execution of an interest rate management agreement; and
(B) the effect that the issuance of a state security or that the execution of an interest rate management agreement will have on the finances and on the overall debt position of the issuer and of the state; and
(5) recommend other advisable practices related to the issuance of a state security.
Added by Acts 2001, 77th Leg., ch. 530, Sec. 1, eff. June 11, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 991 (S.B. 1332), Sec. 4, eff. September 1, 2007.
Last modified: September 28, 2016