| 3 | 5 | | |
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| 4 | 6 | | |
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| 5 | 7 | | A BILL TO BE ENTITLED |
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| 6 | 8 | | AN ACT |
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| 7 | 9 | | relating to the definition of "closing" for purposes of certain |
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| 8 | 10 | | private activity bonds. |
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| 9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 12 | | SECTION 1. Section 1372.001(3), Government Code, is amended |
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| 11 | 13 | | to read as follows: |
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| 12 | 14 | | (3) "Closing" means the [issuance and] delivery of a |
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| 13 | 15 | | bond by an issuer in exchange for the required payment for the bond. |
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| 14 | 16 | | The term includes, for a qualified residential rental project bond, |
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| 15 | 17 | | delivery of a bond in exchange for a partial payment for the |
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| 16 | 18 | | incremental funding of the bond in accordance with the terms of the |
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| 17 | 19 | | bond, provided that the partial payment is not less than 10 percent |
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| 18 | 20 | | of the required payment for the bond. The term does not include a |
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| 19 | 21 | | delivery of a bond if expenditure of the proceeds of the bond is |
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| 20 | 22 | | conditioned on obtaining credit enhancement in support of the bond. |
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| 21 | 23 | | SECTION 2. This Act takes effect immediately if it receives |
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| 22 | 24 | | a vote of two-thirds of all the members elected to each house, as |
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| 23 | 25 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 24 | 26 | | Act does not receive the vote necessary for immediate effect, this |
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| 25 | 27 | | Act takes effect September 1, 2025. |
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