Tex. Transp. Code Section 283.206
Bond Provisions

(a)

A bond authorized by this chapter shall contain the following clause: “The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation.”

(b)

A bond instrument may contain provisions:

(1)

that restrict individual rights of action of a bondholder;

(2)

that detail the rights and remedies of a bondholder and a trustee;

(3)

to protect and enforce as reasonable the rights and remedies of a bondholder, including covenants detailing the duties of the county in:

(A)

acquiring property and constructing, maintaining, operating, repairing, and insuring the project; and

(B)

maintaining custody of the bond proceeds and revenues and safeguarding and applying the funds; and

(4)

to secure as reasonable a bondholder, including covenants detailing:

(A)

an event that constitutes an event of default;

(B)

terms and conditions that would or could result in an acceleration of the bond maturity date; and

(C)

rights, liabilities, powers, and duties that arise because of a breach by the county.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Source: Section 283.206 — Bond Provisions, https://statutes.­capitol.­texas.­gov/Docs/TN/htm/TN.­283.­htm#283.­206 (accessed Apr. 20, 2024).

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Accessed:
Apr. 20, 2024

§ 283.206’s source at texas​.gov