Sec. 1505.110. OPERATING EXPENSES AS FIRST LIEN. (a) The reasonable costs of administering and operating and the reasonable expense of maintaining the project are a first lien against the revenue and income from the operation of the project, superior to the lien of any indenture or deed of trust on the project.
(b) From the revenue and income of the project, the municipality shall, monthly or more frequently if necessary:
(1) first deposit to the credit of the operation and maintenance account an amount sufficient to pay the costs and expense described in Subsection (a); and
(2) deposit to the credit of the interest and sinking fund account an amount sufficient to pay when due the principal of and interest on the obligation.
(c) Revenue or income from a project may not be used except as provided by this section while an obligation related to the project remains outstanding.
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 1505 - Obligations for Coastal Municipalities for Coastal Matters
Subchapter C. Obligations for Toll Bridges and Other Facilities in Certain Coastal Municipalities
Section 1505.101. Applicability of Subchapter
Section 1505.103. Authority to Issue Obligations for Certain Facilities
Section 1505.104. Authority to Borrow Money
Section 1505.105. Security for Payment of Obligations
Section 1505.106. Obligations Not Payable From Taxes
Section 1505.109. Accounts Required to Be Created by Ordinance
Section 1505.110. Operating Expenses as First Lien
Section 1505.111. Execution of Indenture or Deed of Trust
Section 1505.112. Authority to Remove or Demolish Bridge or Tunnel
Section 1505.113. Conversion of Bridge or Tunnel to Toll Bridge or Tunnel