Texas Special District Local Laws Code 11010.201 – Revenue Bonds, Notes, and Other Obligations
(a) In addition to bonds, notes, and other obligations that the authority is authorized to issue under other law, to accomplish the purposes of the authority, the authority may issue bonds, notes, or other obligations payable solely from and secured by all or part of any funds or any revenue from any source or sources, including:
(1) fees, rates, and other charges the authority imposes or collects;
(2) the sale of:
(A) water;
(B) water or wastewater services;
(C) water rights or capacity;
(D) water transmission rights, capacity, or services;
(E) water pumping;
(F) wastewater reused directly or indirectly;
(G) aquifer storage and recovery services;
(H) sewer services; or
(I) any other service or product of the authority provided inside or outside the boundaries of the authority;
(3) grants or gifts;
(4) the ownership or operation of all or a designated part of the authority’s works, improvements, facilities, plants, or equipment; and
(5) the proceeds of contracts.
(b) Bonds, notes, or other obligations issued by the authority may be first or subordinate lien obligations at the board’s discretion.
Terms Used In Texas Special District Local Laws Code 11010.201
- Contract: A legal written agreement that becomes binding when signed.
- 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.
- 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.
(c) In connection with any bonds, notes, or other obligations of the authority, the authority may exercise any power of an issuer under Chapter 1371, Government Code.
(d) The authority may conduct a public, private, or negotiated sale of the bonds, notes, or other obligations.
(e) The authority may enter into one or more indentures of trust to further secure its bonds, notes, or other obligations.
(f) The authority may issue bonds, notes, or other obligations in more than one series as necessary to carry out the purposes of this chapter. In issuing bonds, notes, or other obligations secured by revenue of the authority, the authority may reserve the right to issue additional bonds, notes, or other obligations secured by the authority’s revenue that are on parity with or are senior or subordinate to the bonds, notes, or other obligations issued earlier.
(g) A resolution of the board or a trust indenture securing the bonds, notes, or other obligations may specify additional provisions that constitute a contract between the authority and the authority’s bondholders, noteholders, or other obligation holders.
(h) Bonds, notes, or other obligations may be additionally secured by deed of trust or mortgage on any or all of the authority’s facilities.
(i) The authority provided by this chapter for the authorization and issuance of bonds, notes, and other obligations is in addition to, and not in lieu of, the authority otherwise established under general law and may not be construed as a limitation on, or a modification of, general law providing for authorization and issuance of bonds, notes, and other forms of obligations. Nothing in this chapter may be construed as affecting any existing contract, bond, note, or other obligation of the authority or any indenture, covenant, mortgage, or other agreement relating to them.