Tex. Health & Safety Code Section 383.028
Trusts as Security


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.


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


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


provide for amendment or modification of the trust indenture;


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;


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


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 Dec. 2, 2023).

Dec. 2, 2023

§ 383.028’s source at texas​.gov