Sec. 399.016. BONDS OR NOTES. (a) A local government may issue bonds or notes to finance qualified projects through contractual assessments under this chapter.
(b) Bonds or notes issued under this section may not be general obligations of the local government. The bonds or notes must be secured by one or more of the following as provided by the governing body of the local government in the resolution or ordinance approving the bonds or notes:
(1) payments of contractual assessments on benefited property in one or more specified regions designated under this chapter;
(2) reserves established by the local government from grants, bonds, or net proceeds or other lawfully available funds;
(3) municipal bond insurance, lines of credit, public or private guaranties, standby bond purchase agreements, collateral assignments, mortgages, or any other available means of providing credit support or liquidity; and
(4) any other funds lawfully available for purposes consistent with this chapter.
(c) A local government pledge of assessments, funds, or contractual rights in connection with the issuance of bonds or notes by the local government under this chapter is a first lien on the assessments, funds, or contractual rights pledged in favor of the person to whom the pledge is given, without further action by the local government. The lien is valid and binding against any other person, with or without notice.
(d) Bonds or notes issued under this chapter further an essential public and governmental purpose, including:
(1) improvement of the reliability of the state electrical system;
(2) conservation of state water resources consistent with the state water plan;
(3) reduction of energy costs;
(4) economic stimulation and development;
(5) enhancement of property values;
(6) enhancement of employment opportunities; and
(7) reduction in greenhouse gas emissions.
Added by Acts 2013, 83rd Leg., R.S., Ch. 416 (S.B. 385), Sec. 1, eff. June 14, 2013.
Structure Texas Statutes
Title 12 - Planning and Development
Subtitle C - Planning and Development Provisions Applying to More Than One Type of Local Government
Chapter 399 - Municipal and County Water and Energy Improvement Regions
Section 399.003. Exercise of Powers
Section 399.004. Authorized Assessments
Section 399.005. Written Contract for Assessment Required
Section 399.006. Establishment of Program
Section 399.007. Designation of Region
Section 399.008. Procedure for Establishment of Program
Section 399.009. Report Regarding Assessment
Section 399.010. Notice to Mortgage Holder Required for Participation
Section 399.011. Review Required
Section 399.012. Direct Acquisition by Owner
Section 399.013. Recording of Notice of Contractual Assessment Required
Section 399.015. Contract for Collection of Assessments; No Personal Liability
Section 399.016. Bonds or Notes
Section 399.017. Joint Implementation