(a) The following are exempt from the approval and registration requirements of this chapter:
(1) a public security that is:
(A) not subject to mandatory renewal or renewal at the option of any person, including the issuer, a holder, or a bearer; and
(B) payable only out of:
(i) current revenues or taxes collected in the year the public security is issued; or
(ii) the proceeds of other public securities;
(2) a certificate in evidence of benefit assessments;
(3) a certificate of obligation, including a claim or account that represents an undivided interest in a certificate of obligation, that under Subchapter C, Chapter 271, Local Government Code, an issuer is authorized to deliver to a contractor;
(4) a time warrant issued under Chapter 252 or 262, Local Government Code;
(5) a public security authorized by Chapter 1371;
(6) a lease, lease-purchase, or installment sale obligation, except as provided by other law;
(7) a public security that by rule the attorney general exempts because it is not practical to require approval before the public security's issuance; and
(8) a nonnegotiable note issued under Section 45.108, Education Code, in a principal amount that does not exceed $1 million.
(b) The exemptions provided by Subsection (a) shall be narrowly construed.
(c) An issuer that issues a public security that is exempt under Subsection (a) may submit the public security to the attorney general as provided by this chapter.