Tex. Gov't Code Section 1501.262
Deposit and Use of Bond Proceeds


(a)

The governing body of the municipality:

(1)

shall provide for the deposit of money to the credit of the interest and sinking fund, the reserve fund, and other funds as prescribed by the ordinance authorizing the bonds; and

(2)

may provide for all or part of the bond proceeds to be deposited to the credit of those funds as necessary to pay interest during construction and for an additional period not to exceed two years.

(b)

The municipality shall deposit the bond proceeds to the credit of a fund to be used solely to pay:

(1)

the cost of issuing and selling the bonds;

(2)

the construction cost of any part of the water supply project that the contract between the municipality and the river authority obligates the municipality to provide; and

(3)

the construction cost of any part of the facilities to be constructed, owned, and operated by the municipality as provided by Section 1501.253 (Water Supply Project Ownership and Responsibilities).

(c)

Before the use of the bond proceeds for construction or during the period of construction, the municipality may:

(1)

invest the proceeds in bonds or other direct obligations of the United States; and

(2)

sell the investments as directed by the governing body for construction purposes when necessary.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Source: Section 1501.262 — Deposit and Use of Bond Proceeds, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­1501.­htm#1501.­262 (accessed Jun. 5, 2024).

1501.001
Applicability of Subchapter
1501.002
Authority to Issue Bonds
1501.003
Pledge of Revenue
1501.004
Authority to Issue Additional Bonds
1501.005
Contracts
1501.006
Rates for Service
1501.007
Other Law Applicable
1501.051
Authority to Use Utility Revenue for Sinking Fund or Interest Payments
1501.052
Effect on Taxes
1501.101
Authority to Acquire and Operate Texas-new Mexico Electric Plant and System
1501.102
Authority to Issue Revenue Bonds
1501.103
Authority to Sell Electricity of Plant and System
1501.151
Authority to Issue Certificates of Indebtedness
1501.152
Notice of Intention to Issue Certificates of Indebtedness
1501.153
Petition
1501.154
Maturity
1501.155
Signatures
1501.156
Sale of Certificates
1501.157
Use of Proceeds
1501.158
Imposition of Ad Valorem Tax
1501.201
Applicability of Subchapter
1501.202
Definitions
1501.203
Authority to Issue Bonds
1501.204
Pledge of Revenue
1501.205
Notice of Intention to Issue Bonds
1501.206
Petition
1501.207
Sale of District Property
1501.208
Interest and Sinking Fund of District
1501.209
Investment of Money in Interest and Sinking Fund
1501.210
Payment of Outstanding Bonds
1501.211
Ordinance Specifying Date of Passage of Title
1501.212
Operation and Management of Properties
1501.213
Segregation of Properties
1501.251
Applicability of Subchapter
1501.252
Alternative Financing Procedure
1501.253
Water Supply Project Ownership and Responsibilities
1501.254
Ordinance Authorizing and Issuance of Bonds
1501.255
Notice of Intention to Issue Bonds
1501.256
Petition
1501.257
Maturity
1501.258
Signatures
1501.259
Sale of Bonds
1501.260
Interim Bonds
1501.261
Rates, Tolls, and Charges
1501.262
Deposit and Use of Bond Proceeds
1501.263
Refunding Bonds
1501.264
Conflict with Other Law

Accessed:
Jun. 5, 2024

§ 1501.262’s source at texas​.gov