HB 536, 63rd R.S.
Defining the term "Issuer" to mean and include the State of Texas or any department, agency or instrumentality of the State or any county, municipal cooperation, taxing district or other political body, board, district or subdivision of the State having power to borrow money and issue bonds, notes or other evidences of indebtedness, and which has the power to issue refunding of bonds in lieu of outstanding obligations of the issuer; authorizing the governing body of any issuer to refund any interest bearing obligations and/or interest coupons appertaining thereto, issued by or on behalf of said issuer, by the issuance of refunding bonds; providing for the manner in which said refunding bonds may be issued and delivered, and for certain restrictions in connection therewith; providing for the approval of said refunding bonds by the Attorney General and their registration by the Comptroller of Public Accounts; providing for the sale of said refunding bonds for cash to provide the money required to pay, retire, or redeem, at or prior to maturity, the obligations being refunded; providing in connection with the sale of refunding bonds for the deposit of money or certain obligations of the United States of American with the State Treasurer of the State of Texas in an amount sufficient to provide for the payment, retirement, or redemptions of the obligations being refunded, and requiring the State Treasurer to use said deposits and the proceeds therefrom for such payment retirement, or redemption; providing that all such deposits, and the proceeds therefrom, shall be kept and held separate and apart in escrow, and in trust, charged with a first lien in favor of the holders of the obligations to be paid therefrom, and protecting said deposits, and the proceeds therefrom, by the State Treasurer's official bonds; providing in the alternative for making appropriate arrangements with the place of payment for such deposits and the payment, retirement, or redemption of the obligations being refunded; providing that, at the option of the Issuer, such obligations being refunded shall be discharged, and shall not be regarded as being outstanding, when the required deposits have been made hereunder, or, that the refunding bonds may be made subordinate to the obligations being refunded; providing that this Act shall be cumulative of all other laws on the subject, but shall prevail and control in the case of conflict with any other law; prescribing a severability provision.
