Texas § TN.317.112 - ENCUMBRANCE AS ADDITIONAL SECURITY
Full text of Texas The Texas Constitution § TN.317.112 — ENCUMBRANCE AS ADDITIONAL SECURITY, with citation guidance and answers to common questions.
§ TN.317.112. ENCUMBRANCE AS ADDITIONAL SECURITY
ENCUMBRANCE AS ADDITIONAL SECURITY. (a) As additional security for the payment of revenue bonds issued under this chapter, the governing body of a municipality may have executed in favor of the bondholders an indenture or deed of trust that encumbers all or part of a facility the net revenue of which is pledged to the payment of the bonds, including the land on which the facility is located. (b) An indenture or deed of trust entered into under this section: (1) may contain terms considered proper by the governing body; (2) may provide for a grant, to any purchaser at a foreclosure sale, of a franchise to operate the facility for a term not to exceed 40 years from the date of the purchase, subject to all laws regulating same then in force; and (3) is enforceable in the manner provided under the laws of this state for the enforcement of other encumbrances. (c) Under a sale ordered under the provisions of an encumbrance entered into under this section, the purchaser and the purchaser's successors or assigns are vested with: (1) a permit or franchise to maintain the facility that conforms to the provisions stipulated in the indenture or deed of trust; (2) powers and privileges similar to those of the municipality in the operation of the facility; and (3) the right to remove all or part of the facility for diversion to other purposes. (d) The laws of this state other than this chapter do not apply to the authorization or execution of an encumbrance entered into under this chapter or to the granting of a franchise under this chapter. Added by Acts 1999, 76th Leg., ch. 227, Sec. 24, eff. Sept. 1, 1999. SUBCHAPTER D. REFUNDING BONDS
Frequently Asked Questions About Texas § TN.317.112
What does The Texas Constitution § TN.317.112 cover?
Section TN.317.112 ("ENCUMBRANCE AS ADDITIONAL SECURITY") 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.317.112?
A common citation format is "The Texas Constitution § TN.317.112" (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.317.112 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.