Texas Health and Safety Code 383.028 – Trusts as Security
(a) The governing body may additionally secure bonds, including refunding bonds, by a trust indenture under which the trustee may be a bank having trust powers located inside or outside the state.
(b) Regardless of any mortgage, deed of trust lien, or security interest under Section 383.029, the trust indenture may:
(1) contain any provision that the governing body prescribes for the security of the bonds and the preservation of the trust estate;
(2) provide for amendment or modification of the trust indenture;
(3) condition the right to spend the issuer’s money or sell an issuer’s control facility on approval of a registered professional engineer selected as provided by the trust indenture;
(4) contain provisions governing issuance of bonds to replace lost, stolen, or mutilated bonds; and
(5) otherwise provide for protecting and enforcing a bondholder’s rights and remedies as is reasonable, proper, and lawful.
Terms Used In Texas Health and Safety Code 383.028
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Trustee: A person or institution holding and administering property in trust.