Sec. 1501.208. INTEREST AND SINKING FUND OF DISTRICT. (a) The interest and sinking fund of a district must be permanently maintained in the bank where bonds of the district are payable.
(b) A district to which money is paid under Section 1501.207 shall promptly deposit that money, as well as other applicable money and investments of the district, to the credit of the interest and sinking fund of the district.
(c) A bank of payment that receives a deposit of money or an investment shall hold that money or investment in trust for the benefit of the holders of outstanding bonds of the district.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.
Structure Texas Statutes
Subtitle J - Specific Authority for Municipalities to Issue Securities
Chapter 1501 - Obligations for Municipal Utilities
Section 1501.201. Applicability of Subchapter
Section 1501.203. Authority to Issue Bonds
Section 1501.204. Pledge of Revenue
Section 1501.205. Notice of Intention to Issue Bonds
Section 1501.206. Petition; Election
Section 1501.207. Sale of District Property
Section 1501.208. Interest and Sinking Fund of District
Section 1501.209. Investment of Money in Interest and Sinking Fund
Section 1501.210. Payment of Outstanding Bonds
Section 1501.211. Ordinance Specifying Date of Passage of Title; Abolition of District