Texas § SD.5004.203 - PROVISIONS OF BOND RESOLUTION OR ORDER

§ SD.5004.203. PROVISIONS OF BOND RESOLUTION OR ORDER

PROVISIONS OF BOND RESOLUTION OR ORDER; AUTHORITY TO ADOPT OR EXECUTE OTHER PROCEEDINGS OR INSTRUMENTS. (a) In the resolution or order adopted by the board authorizing the issuance of bonds payable from net revenue or from the proceeds of a contract or contracts, the board may: (1) provide for the flow of funds and the establishment and maintenance of an interest and sinking fund, reserve funds, and other funds; (2) make any additional covenants for the bonds, the pledged revenue, and the operation, maintenance, and upkeep of the improvements and facilities the income of which is pledged, including a provision for leasing all or part of the improvements and facilities and the use or pledge of money derived from those leases, as the board considers appropriate; (3) prohibit the further issuance of bonds or other obligations payable from the pledged net revenue; (4) reserve the right to issue additional bonds to be secured by a pledge of and payable from the net revenue on a parity with, or subordinate to, the lien and pledge in support of the bonds being issued, subject to any conditions provided by the resolution or order; or (5) include any other provision or covenant, as determined by the board, that is not prohibited by the Texas Constitution or this chapter. (b) The board may adopt and execute any other proceeding or instrument necessary or convenient to issue the bonds. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166 ), Sec. 1.04, eff. April 1, 2009.