Tex.
Gov't Code Section 489.255
Agreements in Bonds
(a)
A resolution of the executive director of the office that authorizes bonds to be issued under Section 489.253 (Revenue-based Bonds Authorized) or a security agreement, including a related indenture or trust indenture, may contain any agreements and provisions customarily contained in instruments securing bonds, including provisions respecting the fixing and collection of obligations, the creation and maintenance of special funds, and the rights and remedies available, in the event of default to the holders of the bonds or to the trustee under the security agreement, all as the bank considers advisable and consistent with this subchapter. However, in making such an agreement or provision, the bank may not incur:(1)
a pecuniary liability of this state, the office, or the bank; or(2)
a charge against the general credit of this state, the office, or the bank, or against the taxing powers of this state.(b)
The resolution of the executive director of the office authorizing the issuance of the bonds and a security agreement securing the bonds may provide that, in the event of default in payment of the principal of or interest on the bonds or in the performance of an agreement contained in the proceedings or security agreement, the payment and performance may be enforced as provided by Sections 403.055 (Payments to Debtors or Delinquents Prohibited) and 403.0551 (Deductions for Repayment of Certain Debts or Tax Delinquencies), by mandamus, or by the appointment of a receiver in equity with power to charge and collect bonds and to apply revenues pledged according to the proceedings or the provisions of the security agreement. A security agreement may provide that, in the event of default in payment or the violation of an agreement contained in the security agreement, a trustee under the security agreement may enforce the bondholder’s rights by mandamus or other proceedings at law or in equity to obtain any relief permitted by law, including the right to collect and receive any revenue used to secure the bonds.(c)
A breach of a resolution of the executive director of the office adopted under Section 489.253 (Revenue-based Bonds Authorized), a breach of an agreement made under this section, or a default under bonds issued under this subchapter does not constitute:(1)
a pecuniary liability of this state, the office, or the bank; or(2)
a charge against the general credit of this state, the office, or the bank, or against the taxing power of this state.(d)
The trustee or trustees under a security agreement or a depository specified by the security agreement may be any person that the bank designates, regardless of whether the person is a resident of this state or incorporated under the laws of the United States or any state.
Source:
Section 489.255 — Agreements in Bonds, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.489.htm#489.255 (accessed May 4, 2024).
