Tex.
Agric. Code Section 60.103
Bonds
(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 (Obligations for Certain Public Improvements), 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.(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.
Source:
Section 60.103 — Bonds, https://statutes.capitol.texas.gov/Docs/AG/htm/AG.60.htm#60.103
(accessed Apr. 29, 2024).