As authorized and approved by the governing body of an issuer, the governing body may issue, sell, and deliver an obligation to:

1. (1) finance a project cost;
2. (2) refund an obligation issued in connection with an eligible project; or

3. (3) finance all or part of a payment owed or to be owed on:

   1. (A) the establishment of a credit agreement; or

   2. (B) the settlement or termination, at maturity or otherwise, of a credit agreement, whether the settlement or termination occurs:

      1. (i) at the option of the issuer or the other party to the credit agreement; or
      2. (ii) by operation of the terms of the credit agreement.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2001, 77th Leg., ch. 769, Sec. 10, eff. Sept. 1, 2001.

Acts 2007, 80th Leg., R.S., Ch. 1310 (S.B. 968), Sec. 3, eff. June 15, 2007.