Sec. 284.042. USE OF BOND PROCEEDS; LIEN. (a) The proceeds of bonds issued under this chapter:
(1) may be used only to pay the costs of the project described by Section 284.043; and
(2) shall be disbursed under the restrictions the bond instrument provides.
(b) Project operating and maintenance costs to be paid from proceeds of bonds payable in whole or in part from project revenue may include only items expressly defined in the proceedings authorizing the bonds.
(c) Notwithstanding Subsection (a), bond proceeds that remain after the project costs are paid in full shall be used to pay interest on and retire the bonds, unless otherwise provided in the bond instrument.
(d) Unless otherwise provided in the bond instrument, if the bond proceeds are not sufficient to pay all the project costs, additional bonds may be issued up to the amount necessary to pay the remaining costs. The additional bonds are considered to be of the same issue as the original bonds and are entitled to payment from the same fund, without preference for the bonds first issued.
(e) The bondholder or a bond trustee has a lien on the bond proceeds.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Structure Texas Statutes
Subtitle D - Road Laws Relating to Particular Counties
Chapter 284 - Causeways, Bridges, Tunnels, Turnpikes, Ferries, and Highways in Certain Counties
Section 284.031. Bonds Authorized
Section 284.032. Tax Bond Election
Section 284.033. Interim Bonds
Section 284.034. Bond Sale to Pay Outstanding Bonds
Section 284.035. Bond Approval and Registration
Section 284.036. Bonds Secured Solely by Revenue
Section 284.037. Revenue Bond Election Not Required
Section 284.038. Revenue Bonds: Ad Valorem Tax for Maintenance and Operation
Section 284.039. Bonds Are Securities
Section 284.040. Effect of Lien
Section 284.041. Refunding Bonds
Section 284.042. Use of Bond Proceeds; Lien
Section 284.043. Costs and Expenses