Sec. 283.206. BOND PROVISIONS. (a) A bond authorized by this chapter shall contain the following clause: "The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation."
(b) A bond instrument may contain provisions:
(1) that restrict individual rights of action of a bondholder;
(2) that detail the rights and remedies of a bondholder and a trustee;
(3) to protect and enforce as reasonable the rights and remedies of a bondholder, including covenants detailing the duties of the county in:
(A) acquiring property and constructing, maintaining, operating, repairing, and insuring the project; and
(B) maintaining custody of the bond proceeds and revenues and safeguarding and applying the funds; and
(4) to secure as reasonable a bondholder, including covenants detailing:
(A) an event that constitutes an event of default;
(B) terms and conditions that would or could result in an acceleration of the bond maturity date; and
(C) rights, liabilities, powers, and duties that arise because of a breach by the county.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Structure Texas Statutes
Subtitle D - Road Laws Relating to Particular Counties
Chapter 283 - Causeways, Bridges, and Tunnels in Certain Counties
Subchapter C. Provisions Relating to Bonds
Section 283.201. Bond Proceeds
Section 283.202. Costs and Expenses
Section 283.203. Source of Repayment
Section 283.204. Depository for Proceeds and Revenues
Section 283.205. Trust Indenture Permitted
Section 283.206. Bond Provisions
Section 283.207. Bond Approval and Registration