Certificates are debts of the issuer within the meaning of Article XI, Sections 5 and 7, of the Texas Constitution. When delivered, certificates are "security" within the meaning of Chapter 8, Business & Commerce Code, and are general obligations of the issuer within the meaning of Subchapters A and D, Chapter 1207, Government Code.
Tex. Loc. Gov't Code § 271.053
CERTIFICATES AS DEBT AND SECURITY
Known as the Certificate of Obligation Act
The act spans §§ 271.041 to 271.064 (27 sections).
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.