October 20, 2021

Volume XI, Number 293

Advertisement
Advertisement

October 20, 2021

Subscribe to Latest Legal News and Analysis

October 19, 2021

Subscribe to Latest Legal News and Analysis

October 18, 2021

Subscribe to Latest Legal News and Analysis

Legislative Alert: TWIA Finance Opportunities Under Texas Senate Bill 3

Texas Senate Bill 3 (awaiting the Governor’s signature) significantly amended the provisions of Chapter 2210 of the Insurance Code providing for the issuance of public securities by the Texas Public Finance Authority to pay insured losses of the Texas Windstorm Insurance Association (“TWIA”).

Under prior law, such securities could not be issued prior to the occurrence of a windstorm event that resulted in insured losses. S.B. 3 would now allow up to $1 billion of Class 1 securities to be issued on a pre-occurrence basis at the request of the TWIA board and with the approval of the Insurance Commissioner. These pre-occurrence Class 1 securities must mature within 14 years and are payable from TWIA’s net premium and other revenue required to be deposited into a “public security obligation revenue fund.”

In addition, Class 1 public securities would continue to be issuable on an after-occurrence basis; provided that the aggregate amount of Class 1 securities that may be issued during any “catastrophe year” is limited to $1 billion. Further, S.B. 3 would continue to allow Class 2 and 3 securities to be issued on a post-occurrence basis within the limits of the law.

We understand that the issuance of Class 1 securities on a pre-occurrence basis will be given very careful consideration.

Copyright © 2021, Hunton Andrews Kurth LLP. All Rights Reserved.National Law Review, Volume I, Number 186
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Jerry E. Turner, Public Finance Attorney with Andrews Kurth law firm
Of Counsel

Jerry has over 40 years of experience in public finance and has served as senior attorney in connection with the representation of various public clients, including state agencies, university systems, cities, counties, transit authorities and other political subdivisions.  His public finance practice includes serving as bond counsel and underwriter's counsel in connection with municipal bond offerings. In addition, Jerry represents various public funds and endowments in connection with their investment activities.

512-320-9234
James A. Hernandez, Andrews Kurth Law Firm, Public Law Attorney
Partner

James practices in the public law area and also has experience in corporate and securities and real estate law. His focus in the public law area primarily has been in public finance, serving as disclosure counsel, underwriters’ counsel and bond counsel on a variety of public finance transactions for cities, counties and special authorities throughout Texas.

James has extensive experience in the area of transportation development and financing, including representation advising the Harris County Toll Road Authority on operations, contracting and legislative matters, as well as...

713-220-3942
Rick A. Witte, Public finance Attorney, Andrews Kurth, Law firm
Partner

Rick practices in the public law area. His focus is public finance, serving as bond counsel, bank counsel, disclosure counsel or underwriters' counsel in tax-exempt bond transactions for school districts, junior college districts, cities, counties, state agencies and special authorities throughout Texas. He has extensive experience with education, utility and infrastructure financings. Rick has also represented various local governments on special projects, including legislative and investment matters.

Rick is co-chair of the Firm's Public Law section.

713-220-3944
Jerry V. Kyle, Jr., Public Utilities Attorney, Andrews Kurth Law Firm
Partner

Jerry practices in the public law area. With a focus in public finance, he serves as bond counsel or underwriters' counsel in tax-exempt bond transactions. Jerry has been active in traditional bond financings for governmental entities such as school districts, cities, counties and special-purpose districts, advising them on general obligation, ad valorem tax-secured financings and special or limited obligation financings, such as utility system revenue-secured financings, conduit financings, financings for state agencies and financings for entities authorized to act on behalf of...

512-320-9271
Advertisement
Advertisement
Advertisement