1. (a) A pledge or lien provided for in the resolution, order, ordinance, or other proceedings authorizing a public security, a credit agreement, or another agreement on a resource of the issuer, including revenue or income, on an asset of the issuer, or on a fund maintained by the issuer to secure payment of the public security or to secure a payment required by a credit agreement or other agreement:

   1. (1) is valid and binding without further action by the issuer according to its terms and without being filed or recorded, except in the records of the issuer;

   2. (2) is effective from the time of payment for and delivery of the public security or execution of the credit agreement or other agreement until:

      1. (A) the public security or other payment has been paid;
      2. (B) payment of the public security has been provided for; or
      3. (C) each term of the credit agreement or other agreement has been satisfied; and
   3. (3) is effective as to an item on hand or later received, and the item is subject to the lien or pledge without physical delivery of the item or other action.

2. (b) This section does not exempt an issuer from a duty to:

   1. (1) record a lien on real property; or
   2. (2) submit a public security issue for approval by the attorney general and registration by the comptroller.

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