ISSUANCE OF PUBLIC SECURITIES AUTHORIZED

(a) At the request of the association and with the approval of the commissioner, the Texas Public Finance Authority shall issue Class 1, Class 2, or Class 3 public securities. The association shall submit to the commissioner a cost-benefit analysis of various financing methods and funding structures when requesting the issuance of public securities under this subsection. (a-1) The association and the commissioner must approve each tranche of commercial paper issued under a commercial paper program established under this chapter. (b) The association shall specify in the association's request to the board the maximum principal amount of the public securities and the maximum term of the public securities. (c) The principal amount determined by the association under Subsection (b) may be increased to include an amount sufficient to: (1) pay the costs related to issuance of the public securities; (2) provide a public security reserve fund; (3) capitalize interest for the period determined necessary by the association, not to exceed two years; and (4) provide the amount of debt service coverage for public securities determined by the association, in consultation with the authority, to be required for the issuance of marketable public securities.