SECTION 53.152. Pledge Income of a Contract or Lease Involved in the Proposed Issue To Be Supported

The pledged income of a contract or lease involved in the proposed issue must be supported by:

(1) a certified copy of the articles of incorporation, or filed articles of agreement, if applicable, articles of association, and permit to do business in Texas, if a foreign corporation, of the lessee, franchisee, concessionaire, or other primary part-beneficiary, if nongovernmental of the lease or contract;

(2) a complete audit by a certified public accountant of the lessee, franchisee, concessionaire, or other primary party-beneficiary of the lease or contract dated within not more than 90 days preceding the date of the transcript's submission;

(3) an affidavit of the chief financial officer of the lessee, franchisee, concessionaire, or other primary party-beneficiary of the lease or contract involved to the effect that no changes in the financial condition material to the pledged income have occurred since such audit date. Such affidavit shall be dated within 10 days of the date of submission of the transcript. If a material change has occurred it shall be detailed in the affidavit;

(4) as of the date of the attorney general's approval, telegraphic confirmation of good-standing from the secretary of state of the state of original incorporation or organization of such lessee, franchisee, concessionaire, or primary party-beneficiary, to be delivered to the assistant attorney general examining the transcript as well as verification by the comptroller of public accounts that all taxes due and owing to the State of Texas by such lessee, franchisee, concessionaire, or primary party-beneficiary have been paid.

Source Note: The provisions of this §53.152 adopted to be effective January 1, 1976.