1. (a) In a revenue anticipation agreement, the commissioners court may promise to execute and deliver, concurrently with the making of advances under the agreement, interest-bearing bonds evidencing the county's and hospital district's obligation to repay the advances as provided by the agreement and this subchapter.
2. (b) The bonds may be delivered on terms consistent with the terms specified for a revenue anticipation agreement by this subchapter.
3. (c) The provisions of this subchapter that relate to advances apply to bonds issued under this section.

4. (d) Bonds issued under this subchapter are:

   1. (1) incontestable in a court or other forum;
   2. (2) valid and binding obligations;
   3. (3) investment securities under the Uniform Commercial Code (Title 1, Business & Commerce Code);
   4. (4) legal and authorized security for public funds of the state and its political subdivisions; and
   5. (5) legal and authorized investments by a bank, savings bank, savings and loan association, or insurance company.

Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.