Texas Local Government Code 394.052 – Bond Covenants
(a) A resolution authorizing the issuance of bonds under this chapter may contain covenants relating to:
(1) the use and disposition of the bond proceeds and of the revenue and receipts from any residential development or home mortgages for which the bonds are issued, including the creation and maintenance of reserves;
(2) the issuance of other or additional bonds relating to any residential development or to any rehabilitation, improvement, renovation, or enlargement of, or addition to, a residential development;
(3) the maintenance and repair of a residential development or any homes;
(4) the insurance carried on any residential development, home, home mortgage, or bonds, and the use and disposition of insurance money;
(5) the appointment of one or more banks or trust companies located inside or outside this state that have the necessary trust powers as trustee or custodian for the benefit of the bondholders, paying agent, or bond registrar, and the investment of any funds held by the trustee or custodian;
(6) the appointment of one or more mortgage bankers to provide necessary administrative and mortgage servicing functions to assure the proper administration of the corporation‘s portfolio of home mortgage loans for the benefit of the bondholders;
(7) the maximum interest rate payable on any home mortgage; and
(8) the terms on which the bondholders or the trustees for the bonds are entitled to the appointment of a receiver by a court of competent jurisdiction.
(b) The terms established under Subsection (a)(8) relating to the appointment of a receiver may provide that the receiver may:
(1) enter and take possession of all or part of the residential development or home mortgage;
(2) maintain, lease, sell, or otherwise dispose of the development or mortgage;
(3) prescribe rentals or other payments; and
(4) collect, receive, and apply all income and other revenues that arise from the development or mortgage after the receiver takes possession.
Terms Used In Texas Local Government Code 394.052
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- 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.