Tex.
Nat. Resources Code Section 221.047
Bond Requirements
(a)
A bond issued under Section 221.046 (Mitigation Bank Financing) is a negotiable instrument within the meaning and for purposes of the Business & Commerce Code.(b)
The bond may be:(1)
issued registrable as to principal or as to both principal and interest; or(2)
made redeemable before maturity.(c)
The bond may be:(1)
issued in the form, denominations, and manner and under the terms provided by the order or resolution authorizing the issuance of the bond; and(2)
sold in the manner, at the price, and under the terms provided by the order or resolution authorizing the issuance of the bond.(d)
The bond shall:(1)
be executed in accordance with the order or resolution authorizing the issuance of the bond; and(2)
bear interest at the rate provided by the order or resolution authorizing the issuance of the bond.(e)
The bond may bear interest and may be issued in accordance with:(1)
Chapters 1201 (Public Security Procedures Act), 1204 (Interest Rate), and 1371 (Obligations for Certain Public Improvements), Government Code; or(2)
Subchapters A-C, Chapter 1207 (Refunding Bonds), Government Code.(f)
The bond may be additionally secured by a:(1)
mortgage or deed of trust on real property that is related to the mitigation bank; or(2)
chattel mortgage, lien, or security interest on personal property appurtenant to that real property.(g)
The eligible political subdivision may authorize the execution of a trust indenture, mortgage, deed of trust, or other encumbrance to evidence the indebtedness.(h)
The eligible political subdivision may pledge to the payment of the bond any part of a grant, a donation, revenue, or income received or to be received from the United States or any other source.
Source:
Section 221.047 — Bond Requirements, https://statutes.capitol.texas.gov/Docs/NR/htm/NR.221.htm#221.047 (accessed Jun. 5, 2024).
