Sec. 383.031. INVESTMENT AND USE OF PROCEEDS. (a) The governing body may set aside amounts from the proceeds of the sale of bonds for payment into an interest and sinking fund and reserve funds and may provide for this in the resolution or a security agreement. All expenses of issuing and selling the bonds must be paid from the proceeds of the sale of the bonds.
(b) Proceeds from the sale of bonds may be invested in:
(1) direct or indirect obligations of the United States government or an agency of the United States government that mature in a manner specified by the resolution or a security agreement; or
(2) certificates of deposit of a bank or trust company if the deposits are secured by obligations described by Subdivision (1).
(c) A bank or trust company with trust powers may be designated as depository for proceeds of bonds or of lease or other contract revenue. The bank or trust company shall furnish indemnifying bonds or pledge securities as required by the issuer to secure the deposits.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Structure Texas Statutes
Title 5 - Sanitation and Environmental Quality
Chapter 383 - Clean Air Financing Act
Section 383.021. Authority to Issue
Section 383.022. Form and Procedure
Section 383.024. Approval and Registration
Section 383.025. Pledge of Revenue as Security; Election
Section 383.026. Pledge of Other Utility Revenue; Election
Section 383.027. Security May Apply to Additional Bonds
Section 383.028. Trusts as Security
Section 383.029. Other Security
Section 383.030. Action by Bondholders
Section 383.031. Investment and Use of Proceeds
Section 383.032. Refunding Bonds