Tex. Transp. Code Section 284.042
Use of Bond Proceeds; Lien


(a)

The proceeds of bonds issued under this chapter:

(1)

may be used only to pay the costs of the project described by Section 284.043 (Costs and Expenses); and

(2)

shall be disbursed under the restrictions the bond instrument provides.

(b)

Project operating and maintenance costs to be paid from proceeds of bonds payable in whole or in part from project revenue may include only items expressly defined in the proceedings authorizing the bonds.

(c)

Notwithstanding Subsection (a), bond proceeds that remain after the project costs are paid in full shall be used to pay interest on and retire the bonds, unless otherwise provided in the bond instrument.

(d)

Unless otherwise provided in the bond instrument, if the bond proceeds are not sufficient to pay all the project costs, additional bonds may be issued up to the amount necessary to pay the remaining costs. The additional bonds are considered to be of the same issue as the original bonds and are entitled to payment from the same fund, without preference for the bonds first issued.

(e)

The bondholder or a bond trustee has a lien on the bond proceeds.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Source: Section 284.042 — Use of Bond Proceeds; Lien, https://statutes.­capitol.­texas.­gov/Docs/TN/htm/TN.­284.­htm#284.­042 (accessed Apr. 20, 2024).

284.001
Definitions
284.002
Applicability to Certain Counties and Local Government Corporations
284.003
Project Authorized
284.004
Use of County Property
284.005
Conveyance to County
284.006
Federal or State Aid
284.007
Contracts for Historically Underutilized Businesses
284.008
Powers of Commission
284.011
Transfer of Project to Department
284.012
Transfer of Assets
284.013
Conveyance of Ferry Connecting State Highways
284.031
Bonds Authorized
284.0031
Other Road, Street, or Highway Projects
284.032
Tax Bond Election
284.033
Interim Bonds
284.034
Bond Sale to Pay Outstanding Bonds
284.035
Bond Approval and Registration
284.036
Bonds Secured Solely by Revenue
284.037
Revenue Bond Election Not Required
284.038
Revenue Bonds: Ad Valorem Tax for Maintenance and Operation
284.039
Bonds Are Securities
284.040
Effect of Lien
284.041
Refunding Bonds
284.042
Use of Bond Proceeds
284.043
Costs and Expenses
284.044
Depository
284.045
Bonds Tax Free
284.046
Bondholder Rights
284.061
Acquisition of Property
284.062
Ferry
284.063
Contract for Project Construction
284.064
Contract to Operate
284.065
Pooled Projects
284.066
Operating Board
284.067
Projects Extending into Other Counties
284.068
Reconstruction of Closed or Relocated Nontoll Roads, Streets, or Highways
284.069
Tolls and Charges
284.070
Nonpayment of Toll
284.071
Controlled Access to Toll Road
284.072
Promotion of Toll Roads
284.073
Powers and Duties of Receiver
284.074
Tax and Assessment Exemption: Projects
284.201
Applicability of Subchapter
284.202
Order Prohibiting Operation of Motor Vehicle on Toll Project
284.203
Violation of Order
284.204
Administrative Adjudication Hearing Procedure
284.205
Citation or Summons
284.206
Administrative Hearing: Presumption
284.207
Attendance on Hearing
284.208
Decision of Hearing Officer
284.209
Enforcement of Decision
284.210
Appeal of Hearing Officer Decision
284.211
Hearing on Appeal
284.212
Effect of Appeal
284.213
Seizure of Transponders
284.0615
Declaration of Taking by Certain Counties
284.0665
Compensation of Operating Board Members
284.0701
Administrative Costs
284.0702
Prima Facie Evidence
284.0703
Method of Sending Invoice or Notice
284.2031
Civil and Criminal Enforcement: Fine
284.2032
Fine in Certain Counties

Accessed:
Apr. 20, 2024

§ 284.042’s source at texas​.gov