Local Gov't Code Section 303.074
Use of Proceeds
(a)The proceeds of the bonds of a corporation may be used to:
(1)finance, refinance, or provide one or more public facilities;
(2)maintain reserve funds determined by the sponsor and the corporation to be necessary and appropriate; or
(3)pay any costs relating to the issuance or incurrence of bonds by the corporation and the purchase of sponsor obligations by the corporation, including:
(A)the cost of:
(i)financing charges and interest on the bonds;
(ii)financing, legal, accounting, financial advisory, and appraisal fees, expenses, and disbursements;
(iii)an insurance policy;
(iv)printing, engraving, and reproduction services;
(v)the initial and acceptance fees of a trustee, paying agent, bond registrar, or authenticating agent; and
(vi)a credit agreement; and
(B)reasonable amounts to reimburse the corporation for time spent by its agents or employees with respect to the issuance, incurrence, or purchase.
(b)The purchase by the corporation of a sponsor obligation does not extinguish the debt represented by the sponsor obligation.
(c)Pending a use described by Subsection (a), the proceeds may be invested in accordance with Section 303.041 (Corporation’s General Powers).
Section 303.074 — Use of Proceeds,
https://statutes.capitol.texas.gov/Docs/LG/htm/LG.303.htm#303.074 (accessed Dec. 2, 2023).