Tex. Health & Safety Code Section 383.028
Trusts as Security

(a)

The governing body may additionally secure bonds, including refunding bonds, by a trust indenture under which the trustee may be a bank having trust powers located inside or outside the state.

(b)

Regardless of any mortgage, deed of trust lien, or security interest under Section 383.029 (Other Security), the trust indenture may:

(1)

contain any provision that the governing body prescribes for the security of the bonds and the preservation of the trust estate;

(2)

provide for amendment or modification of the trust indenture;

(3)

condition the right to spend the issuer’s money or sell an issuer’s control facility on approval of a registered professional engineer selected as provided by the trust indenture;

(4)

contain provisions governing issuance of bonds to replace lost, stolen, or mutilated bonds; and

(5)

otherwise provide for protecting and enforcing a bondholder’s rights and remedies as is reasonable, proper, and lawful.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.

Source: Section 383.028 — Trusts as Security, https://statutes.­capitol.­texas.­gov/Docs/HS/htm/HS.­383.­htm#383.­028 (accessed Jun. 5, 2024).

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Accessed:
Jun. 5, 2024

§ 383.028’s source at texas​.gov