Texas Transportation Code 54.109 – Contents of Ordinance or Resolution Authorizing Issuance of Obligations Payable From Revenue
(a) The ordinance of the governing body of the municipality or the resolution of the board authorizing the issuance of obligations payable from revenue may:
(1) provide for the flow of funds and the establishment and maintenance of an interest and sinking fund, reserve fund, or other fund;
(2) specify a depository for the money; and
(3) contain any additional covenant, as considered appropriate, with respect to the obligations, the pledged revenue, and the operation and maintenance of each port improvement or facility the net revenue of which is pledged, including provisions for:
(A) the lease of a port improvement or facility; and
(B) the use or pledge of money derived from that lease.
(b) The ordinance or resolution or another proceeding may:
(1) prohibit the further issuance of obligations payable from pledged revenue; or
(2) reserve the right to issue additional obligations to be secured by a pledge of and payable from the net revenue on a parity with, or subordinate to, the lien and pledge in support of the obligations being issued, subject to any condition provided by the ordinance, resolution, or other proceeding.
Terms Used In Texas Transportation Code 54.109
- 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
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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) The ordinance, resolution, or other proceeding may provide for an annual payment to the general fund of the municipality to be made from revenue received from the operation of the port improvement or facility the net revenue of which is pledged. The amount of the payment may be specified in:
(1) the ordinance, resolution, or proceeding; or
(2) the charter of the municipality if the municipality is a home-rule municipality.
(d) The ordinance, resolution, or other proceeding may provide that surplus net revenue received from the operation of the port improvement or facility the net revenue of which is pledged may be used for the payment of the principal of and interest on any obligation payable from taxes issued by the municipality under this chapter.
(e) The ordinance, resolution, or other proceeding may contain other provisions and covenants. If the municipality is a home-rule municipality, the provisions must be consistent with any charter provision relating to the port improvement or facility that is not inconsistent with this chapter.