Sec. 451.357. SECURITY PLEDGED. (a) To secure the payment of an authority's bonds, the authority may:
(1) pledge all or part of revenue realized from any tax that the authority may impose;
(2) pledge all or part of the revenue of the transit authority system; and
(3) mortgage all or part of the transit authority system, including any part of the system subsequently acquired.
(b) Under Subsection (a)(3) an authority may, subject to the terms of the bond indenture or the resolution authorizing the issuance of the bonds, encumber a separate item of the transit authority system and acquire, use, hold, or contract for the property by lease, chattel mortgage, or other conditional sale including an equipment trust transaction.
(c) An authority may not issue bonds secured by ad valorem tax revenue.
(d) An authority is not prohibited by this subchapter from encumbering one or more transit authority systems to purchase, construct, extend, or repair one or more other transit authority systems.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Structure Texas Statutes
Subtitle K - Mass Transportation
Chapter 451 - Metropolitan Rapid Transit Authorities
Section 451.352. Power to Issue Bonds
Section 451.355. Approval; Registration
Section 451.356. Incontestability
Section 451.357. Security Pledged
Section 451.358. Pledge of Revenue Limited
Section 451.359. Refunding Bonds
Section 451.360. Bonds as Authorized Investments
Section 451.361. Exchange of Bonds for Existing System
Section 451.362. Short-Term Bonds
Section 451.3625. Bonds for Rail System; Certain Authorities