2023 Texas Statutes › Labor Code › Title 4 - Employment Services and Unemployment › Subtitle A - Texas Unemployment Compensation Act › Chapter 203 - Financing and Funds › Subchapter F. Issuance of Financial Obligations for Unemployment Compensation Fund › Section 203.252. Definitions; General Provision

Sec. 203.252.  DEFINITIONS;  GENERAL PROVISION.  (a)  In this subchapter:
(1)  "Authority" means the Texas Public Finance Authority.
(2)  "Bond" means any type of revenue obligation, including a bond, note, certificate, or other instrument, payable from and secured by a pledge of revenues received from the unemployment obligation assessment and amounts on deposit in the obligation trust fund to the extent provided in the proceedings authorizing the obligation.
(3)  "Bond administrative expenses" means expenses incurred to administer bonds issued under this subchapter, including fees for paying agents, trustees, and attorneys, and for other professional services necessary to ensure compliance with applicable state or federal law.
(4)  "Bond obligations" means the principal of a bond and any premium and interest on a bond issued under this subchapter, together with any amount owed under a related credit agreement.
(5)  "Credit agreement" means a loan agreement, a revolving credit agreement, an agreement establishing a line of credit, a letter of credit, an interest rate swap agreement, an interest rate lock agreement, a currency swap agreement, a forward payment conversion agreement, an agreement to provide payments based on levels of or changes in interest rates or currency exchange rates, an agreement to exchange cash flows or a series of payments, an option, put, or call to hedge payment, currency, interest rate, or other exposure, or another agreement that enhances the marketability, security, or creditworthiness of a bond issued under this subchapter.
(b)  An amount owed by the authority under a credit agreement shall be payable from and secured by a pledge of revenues received from the unemployment obligation assessment and amounts on deposit in the obligation trust fund to the extent provided in the proceedings authorizing the credit agreement.
Added by Acts 2003, 78th Leg., ch. 317, Sec. 5, eff. June 18, 2003;  Acts 2003, 78th Leg., ch. 817, Sec. 6.05, eff. June 20, 2003.
Sec. 203.253.  REQUEST FOR BOND ISSUANCE.  (a)  If the commission determines that the issuance of bonds is necessary to reduce or avoid the need to borrow or obtain a federal advance under Section 1201, Social Security Act (42 U.S.C. Section 1321), as amended, or any similar federal law, or to refinance a previous loan or advance received by the commission and that bond financing is the most cost-effective method of funding the payment of benefits, the commission may request the authority to issue bonds on its behalf.  Before making a request of the authority under this subsection, the commission must by resolution determine that the issuance of bonds for the purposes established by this section will result in a savings to the state and to employers in this state as compared to the cost of borrowing or obtaining an advance under Section 1201, Social Security Act (42 U.S.C. Section 1321), as amended, or any similar federal law.
(b)  The commission shall specify in the commission's request to the authority the maximum principal amount of the bonds, not to exceed $2 billion for any separate bond issue, and the maximum term of the bonds, not to exceed 10 years.
(c)  The principal amount determined by the commission under Subsection (b) may be increased to include an amount sufficient to:
(1)  pay the costs of issuance of the authority;
(2)  provide a bond reserve fund;  and
(3)  capitalize interest for the period determined necessary by the commission, not to exceed two years.
Added by Acts 2003, 78th Leg., ch. 317, Sec. 5, eff. June 18, 2003;  Acts 2003, 78th Leg., ch. 817, Sec. 6.05, eff. June 20, 2003.