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
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 1501.262’s source at texas​.gov