Texas § GV.1471.085 - TERMS AND FORM OF COMPENSATION BONDS

§ GV.1471.085. TERMS AND FORM OF COMPENSATION BONDS

TERMS AND FORM OF COMPENSATION BONDS; USE OF SURPLUS BONDS. (a) County bonds issued for a purpose described by Section 1471.081 (c) or (d) shall: (1) be issued in similar denominations, bear the same rate of interest, and have the same date of maturity and similar payment options as the outstanding bonds of the commissioners or justice precinct or road district; and (2) in all respects be similar to the outstanding precinct or district bonds except that the bonds: (A) are county obligations instead of precinct or district obligations; and (B) shall be dated after the election at which the county bonds were authorized. (b) County bonds issued in excess of the amount required to exchange, offset, and retire the outstanding precinct or district bonds must mature within 40 years. (c) The proceeds of county bonds issued in excess of the amount required to exchange, offset, and retire the outstanding precinct or district bonds shall be credited to the available road fund of the county. The commissioners court may spend the proceeds throughout the county only: (1) to construct, maintain, or operate a macadamized, graveled, or paved road or turnpike; or (2) in aid of a purpose described by Subdivision (1). (d) Except as provided by this subchapter, the issuance and sale of bonds authorized by this subchapter and the imposition of taxes for the bonds shall be as required by law for other county bonds. Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.