Sec. 8504.307. INSURING IMPROVEMENTS AND FACILITIES. (a) The board and the purchaser of an obligation issued under this chapter may enter into an agreement under which the board agrees to:
(1) keep all the improvements and facilities, the revenue of which is pledged to the payment of the obligation, insured with one or more insurers of good standing against loss or damage by fire, water or flood, or another hazard that private companies operating similar properties customarily cover by insurance; and
(2) carry with one or more insurers of good standing the insurance covering the use and occupancy of the property that is customarily carried by private companies operating similar properties.
(b) The board shall budget the cost of the insurance as a maintenance and operation expense.
(c) The insurance shall be carried for the benefit of the holder of the obligation.
Added by Acts 2013, 83rd Leg., R.S., Ch. 112 (S.B. 1026), Sec. 1.04, eff. April 1, 2015.
Structure Texas Statutes
Special District Local Laws Code
Title 6 - Water and Wastewater
Subtitle G - River Authorities
Chapter 8504 - Lower Neches Valley Authority
Subchapter G. Obligations Relating to Borrowed Money
Section 8504.301. General Power to Borrow Money
Section 8504.302. Covenants for Marketability
Section 8504.303. Holder of Obligation May Compel Performance
Section 8504.304. Holder of Obligation Entitled to Administrator or Receiver
Section 8504.305. Additional Security for Obligation: Mortgage and Encumbrance
Section 8504.306. Sale Under Mortgage or Encumbrance