Texas Agriculture Code 60.103 – Bonds
Current as of: 2024 | Check for updates
|
Other versions
(a) The district may issue any type of bond, including an anticipation note or refunding bond, for any district purpose. A bond may be issued under Chapter 1371, Government Code.
(b) When authorizing the issuance of a bond, the district may also authorize the later issuance of a parity or subordinate lien bond.
Terms Used In Texas Agriculture Code 60.103
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Property: means real and personal property. See Texas Government Code 311.005
(c) A district bond must:
(1) mature not later than 40 years after its date of issuance; and
(2) state on its face that the bond is not an obligation of the state.
(d) A district bond may be payable from or secured by:
(1) any source of money, including district revenue, loans, or assessments; or
(2) a lien, pledge, mortgage, or other security interest on district revenue or property.
(e) The district may use bond proceeds for any purpose, including to pay:
(1) into a reserve fund for debt service;
(2) for the acquisition, design, construction, repair, maintenance, or replacement of property, including buildings and equipment;
(3) administrative and operating expenses;
(4) all expenses incurred or that will be incurred in the issuance, sale, and delivery of the bonds;
(5) the principal of and interest on bonds; or
(6) for the operation of an agricultural enterprise.
(f) The district may contract with a bondholder to impose an assessment to pay for the operation of an agricultural enterprise.