Tex.
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).
Source:
Section 303.074 — Use of Proceeds, https://statutes.capitol.texas.gov/Docs/LG/htm/LG.303.htm#303.074 (accessed Jun. 5, 2024).
