Texas § TN.202.053 - LEASE OF HIGHWAY ASSETS

§ TN.202.053. LEASE OF HIGHWAY ASSETS

LEASE OF HIGHWAY ASSETS: TERMS. (a) The department may determine all terms of the lease except: (1) a tenant may not be required to post a bond or security for a lease in an amount in excess of six months' rental under the lease; and (2) the lease must allow the tenant to mortgage or otherwise pledge or grant a security interest in the leasehold to secure financing for the acquisition of the leasehold and for the construction and operation of an improvement permitted under the lease. (b) The department may not convey title to, or sever from the real property, any permanent improvement constructed on the area leased under this subchapter. (c) The lease may: (1) contain a provision for early termination, at the option of either party, with or without cause; and (2) provide that the right of one party to terminate without cause before the stated termination date may be conditioned on the payment of an amount negotiated by the parties and specified in the lease. (d) In evaluating the consideration proposed by a tenant, the department may consider the value of any real property the tenant proposes to donate or convey for a highway purpose. (e) Subject to rules of the commission to preserve safety and scenic beauty, a tenant may erect and maintain signs and other advertising displays relating to a business conducted on the leasehold. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.