Contracts entered into by the board for the payment of the principal of or interest on or both the principal of and interest on bonds or other obligations issued by a political subdivision are valid, binding, and incontestable after:

1. (1) approval of the bonds or other obligations by the attorney general;
2. (2) registration of the bonds or other obligations by the comptroller; and

3. (3) purchase by and delivery of the bonds or other obligations to the purchaser.

   Formerly Sec. 15.109, added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Renumbered by Acts 1985, 69th Leg., ch. 133, Sec. 2.04.