(a) Certificates may be authorized by an ordinance adopted by the governing body of a municipality, or by an order adopted by the governing body of a county after compliance with the quorum requirements prescribed by Section 81.006.
(b) The governing body may:
(1) make the certificates payable at times and places determined by the governing body;
(2) issue the certificates in forms and one or more denominations, either in coupon form or registered as to principal and interest, or both;
(3) make the certificates contain options for redemption before scheduled maturity; and
(4) make the certificates contain any other provisions the governing body desires.
(c) A certificate may not mature over a period greater than 40 years from the date of the certificate and may not bear interest at a rate greater than that allowed by Chapter 1204, Government Code.
(d) Except as provided by this subsection, the governing body of an issuer may not authorize a certificate to pay a contractual obligation to be incurred if a bond proposition to authorize the issuance of bonds for the same purpose was submitted to the voters during the preceding three years and failed to be approved. A governing body may authorize a certificate that the governing body is otherwise prohibited from authorizing under this subsection:
(1) in a case described by Sections 271.056(1)-(3); and
(2) to comply with a state or federal law, rule, or regulation if the political subdivision has been officially notified of noncompliance with the law, rule, or regulation.