Sec. 60.103. BONDS. (a) The district may issue any type of bond, including an anticipation note or refunding bond, for any district purpose. A bond may be issued under Chapter 1371, Government Code.
(b) When authorizing the issuance of a bond, the district may also authorize the later issuance of a parity or subordinate lien bond.
(c) A district bond must:
(1) mature not later than 40 years after its date of issuance; and
(2) state on its face that the bond is not an obligation of the state.
(d) A district bond may be payable from or secured by:
(1) any source of money, including district revenue, loans, or assessments; or
(2) a lien, pledge, mortgage, or other security interest on district revenue or property.
(e) The district may use bond proceeds for any purpose, including to pay:
(1) into a reserve fund for debt service;
(2) for the acquisition, design, construction, repair, maintenance, or replacement of property, including buildings and equipment;
(3) administrative and operating expenses;
(4) all expenses incurred or that will be incurred in the issuance, sale, and delivery of the bonds;
(5) the principal of and interest on bonds; or
(6) for the operation of an agricultural enterprise.
(f) The district may contract with a bondholder to impose an assessment to pay for the operation of an agricultural enterprise.
Added by Acts 2001, 77th Leg., ch. 1393, Sec. 1, eff. June 16, 2001.
Structure Texas Statutes