Sec. 228.109. TRUST AGREEMENT. (a) Bonds issued under this subchapter may be secured by a trust agreement between the commission and a corporate trustee that is a trust company or a bank that has the powers of a trust company.
(b) A trust agreement may pledge or assign the tolls and other revenue to be received but may not convey or mortgage any part of a toll project or system.
(c) A trust agreement may not evidence a pledge of the revenue of a toll project or system except:
(1) to pay the cost of maintaining, repairing, and operating the project or system;
(2) to pay the principal of, interest on, and any redemption premium on the bonds as they become due and payable;
(3) to create and maintain reserves for the purposes described by Subdivisions (1) and (2), as prescribed by Section 228.053; and
(4) as otherwise provided by law.
(d) Notwithstanding Subsection (c), surplus revenue may be used for a transportation or air quality project as authorized by Section 228.006.
(e) A trust agreement may:
(1) set forth the rights and remedies of the bondholders and the trustee;
(2) restrict the individual right of action by bondholders as is customary in trust agreements or trust indentures securing corporate bonds and debentures; and
(3) contain provisions the commission determines reasonable and proper for the security of the bondholders.
(f) The expenses incurred in carrying out a trust agreement may be treated as part of the cost of operating the toll project or system.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995. Amended by Acts 1995, 74th Leg., ch. 872, Sec. 2.08, eff. Sept. 1, 1995; Acts 2003, 78th Leg., ch. 312, Sec. 27, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 1325, Sec. 15.28, eff. June 21, 2003.
Transferred from Transportation Code, Section 361.176 and amended by Acts 2005, 79th Leg., Ch. 281 (H.B. 2702), Sec. 2.42, eff. June 14, 2005.
Structure Texas Statutes
Subtitle B - State Highway System
Chapter 228 - State Highway Toll Projects
Subchapter C. Toll Revenue Bonds
Section 228.101. Construction Costs
Section 228.102. Issuance of Bonds
Section 228.103. Applicability of Other Law; Conflicts
Section 228.104. Payment of Bonds; Credit of State Not Pledged
Section 228.105. Sources of Payment of and Security for Toll Revenue Bonds
Section 228.106. Interim Bonds
Section 228.107. Effect of Lien
Section 228.108. Approval of Bonds by Attorney General
Section 228.109. Trust Agreement
Section 228.110. Provisions Protecting and Enforcing Rights and Remedies of Bondholders
Section 228.111. Furnishing of Indemnifying Bonds or Pledge of Securities
Section 228.112. Feasibility Study by Municipality, County, or Private Group
Section 228.115. Exemption From Taxation or Assessment
Section 228.116. Valuation of Bonds Securing Deposit of Public Funds