Tex.
Transp. Code Section 228.109
Trust Agreement
(a)
Bonds issued under this subchapter may be secured by a trust agreement between the commission and a corporate trustee that is a trust company or a bank that has the powers of a trust company.(b)
A trust agreement may pledge or assign the tolls and other revenue to be received but may not convey or mortgage any part of a toll project or system.(c)
A trust agreement may not evidence a pledge of the revenue of a toll project or system except:(1)
to pay the cost of maintaining, repairing, and operating the project or system;(2)
to pay the principal of, interest on, and any redemption premium on the bonds as they become due and payable;(3)
to create and maintain reserves for the purposes described by Subdivisions (1) and (2), as prescribed by Section 228.053 (Revenue); and(4)
as otherwise provided by law.(d)
Notwithstanding Subsection (c), surplus revenue may be used for a transportation or air quality project as authorized by Section 228.006 (Use of Surplus Revenue).(e)
A trust agreement may:(1)
set forth the rights and remedies of the bondholders and the trustee;(2)
restrict the individual right of action by bondholders as is customary in trust agreements or trust indentures securing corporate bonds and debentures; and(3)
contain provisions the commission determines reasonable and proper for the security of the bondholders.(f)
The expenses incurred in carrying out a trust agreement may be treated as part of the cost of operating the toll project or system.
Source:
Section 228.109 — Trust Agreement, https://statutes.capitol.texas.gov/Docs/TN/htm/TN.228.htm#228.109 (accessed Jun. 5, 2024).
