The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Act.
The Texas Non-Profit Corporation Act (Vernon's Ann. Civ. St. art. 1396-1.01 et seq.).
Articles.
The articles of incorporation of the authority.
Authority.
The City of Highland Village Property Finance Authority, Inc., a nonprofit corporation of the state, authorized and created by the council, pursuant to the Act, as its constituted and authorized authority and instrumentality to act on its behalf and for its benefit in financing, implementing and administering any governmental programs prescribed by this division and future ordinances or resolutions of the council.
Governmental program.
Any program defined, implemented and administered by the authority as authorized and on behalf of the city council, which program provides for the acquisition, use and purchase of property by the city and the financing of such activities as are necessary to the efficient and economic operation of the city, in accordance with the provisions of the Public Property Finance Act.
Property acquisition program.
The initial governmental program of the authority, authorized for the purpose of purchasing, leasing, using or otherwise acquiring all types of personal and real property that are necessary or appropriate in the performance of the city's public functions.
Public Property Finance Act.
V.T.C.A., Local Government Code, section 271.001 et seq.
(1999 Code, sec. 2-201)
The council hereby finds and determines that it is advisable and in the public interest that the city, acting under the authority of its duly adopted home rule charter and the general laws of the state, from time to time, to define, adopt and implement governmental programs necessary to provide needed property and funds for public use and to provide such programs at the least possible cost to the city.
(1999 Code, sec. 2-202)
In order to aid the city in the implementation of such programs, the council hereby authorizes the creation of a nonprofit corporation, to be named the "City of Highland Village Property Finance Authority, Inc." (the authority), the same to be authorized and created under and with the power granted in the Texas Non-Profit Corporation Act, Vernon's Ann. Civ. St. art. 1396-1.01 et seq.), and in connection therewith the council hereby:
(1) 
Approves the articles of incorporation for the authority in substantially the form and substance attached to Ordinance No. 86-477 as exhibit A and authorizes the named incorporators therein to file the articles with the secretary of state in accordance with law; provided, however, that, if the name chosen for the authority is not available, the incorporators are authorized to select a different name without further action of the council;
(2) 
Appoints those persons named in the articles, each of whom on the date of this appointment is duly qualified under the Act, to serve as the initial members of the board of directors of the authority, with the right hereby reserved in the council to remove and replace such persons as directors at any time and with or without cause;
(3) 
Approves the initial bylaws for the authority in substantially the form and substance attached to Ordinance No. 86-477 as exhibit B;
(4) 
Directs that no security or debt instrument in the form of bonds, notes or other similar evidence of indebtedness shall be authorized or approved by the board of directors without the consent of the council, as evidenced by its duly adopted resolution;
(5) 
Declares and orders that the authority shall not implement or administer any governmental program which has not been specifically authorized by ordinance or resolution adopted by the council, and it shall not engage in any business or other activity except in connection with a governmental program that has been approved and ordered implemented by the council;
(6) 
Declares and orders that no bond, note or other obligation shall be or represent an indebtedness or obligation of the city, except only to the extent the same may be, with the consent of the council, made expressly payable from funds to be paid by the city pursuant to contracts or other agreements executed by the authority and the city for the purpose of accomplishing the public purposes of the city; and
(7) 
States its intention that the authority shall be a duly constituted and authorized authority and instrumentality of the city acting on its behalf within all applicable regulations and revenue rulings of the Treasury Department and the Internal Revenue Service of the United States promulgated under sections 103 and 115 of the Internal Revenue Code of 1954, as amended, and under any successor provisions thereto.
(1999 Code, sec. 2-203)
The council hereby authorizes the development and implementation of the property acquisition program of the city, and, promptly after its incorporation and organization, the board of directors of the authority is authorized and directed to:
(1) 
Develop and present to the council the authority's plan for the authority to purchase, lease or otherwise acquire and to sell, lease or otherwise convey to the city all types of personal and real property that are necessary or appropriate for the performance of the city's public functions;
(2) 
Develop and present to the council for consideration and approval a plan for initial funding of a property acquisition fund for the city;
(3) 
Prepare and present to the council all documents and instruments necessary to implement the initial funding plan described above; and
(4) 
For all purposes of article IV of the articles of incorporation, the property acquisition program authorized by this section shall be deemed to be an approved program of the city, and all parties dealing with the authority are entitled to rely upon the acts, contracts, agreements and representations of the authority that purport to be in furtherance of such program or are represented to be so by the authority.
(1999 Code, sec. 2-204)
As provided in the Act, the authority shall be a nonprofit corporation, and no part of its net earnings remaining after payment of its expenses, bonds, notes or other obligations shall ever inure to the benefit of any individual, firm or corporation, except that, if sufficient provision has been made for the full payment of the expenses, bonds, notes and other obligations of the authority, then any net earnings of the authority thereafter accruing shall be paid to or as directed by the city.
(1999 Code, sec. 2-205)
The city expressly reserves the right, exercisable at any time and in its sole discretion, to alter the structure, organization, programs or activities of the authority or to terminate and dissolve the authority, subject only to any limitations provided by the respective constitutions and laws of the state or of the United States prohibiting the impairment of contracts entered into by the authority.
(1999 Code, sec. 2-206)
Whenever the board of directors shall determine that the purposes for which the authority was formed have been substantially accomplished and that all bonds, notes and other obligations theretofore issued or incurred by the authority have been fully paid or payment has been provided therefor, the members of the board of directors shall, upon receipt of the approval of the council, thereupon dissolve the authority in the manner provided by law, subject to the limitations provided in section 2.06.066 applicable to dissolution directed by the council.
(1999 Code, sec. 2-207)
Whenever dissolution of the authority shall occur, whether instituted by the council or by the board of directors of the authority, the dissolution proceedings shall transfer the title to all funds and properties then owned by the authority to the city after satisfaction of all claims against the authority has been made.
(1999 Code, sec. 2-208)