Texas § TN.284.042 - USE OF BOND PROCEEDS
Full text of Texas The Texas Constitution § TN.284.042 — USE OF BOND PROCEEDS, with citation guidance and answers to common questions.
§ TN.284.042. USE OF BOND PROCEEDS
USE OF BOND PROCEEDS; LIEN. (a) The proceeds of bonds issued under this chapter: (1) may be used only to pay the costs of the project described by Section 284.043 ; and (2) shall be disbursed under the restrictions the bond instrument provides. (b) Project operating and maintenance costs to be paid from proceeds of bonds payable in whole or in part from project revenue may include only items expressly defined in the proceedings authorizing the bonds. (c) Notwithstanding Subsection (a), bond proceeds that remain after the project costs are paid in full shall be used to pay interest on and retire the bonds, unless otherwise provided in the bond instrument. (d) Unless otherwise provided in the bond instrument, if the bond proceeds are not sufficient to pay all the project costs, additional bonds may be issued up to the amount necessary to pay the remaining costs. The additional bonds are considered to be of the same issue as the original bonds and are entitled to payment from the same fund, without preference for the bonds first issued. (e) The bondholder or a bond trustee has a lien on the bond proceeds. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § TN.284.042
What does The Texas Constitution § TN.284.042 cover?
Section TN.284.042 ("USE OF BOND PROCEEDS") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § TN.284.042?
A common citation format is "The Texas Constitution § TN.284.042" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § TN.284.042 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.