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Texas Transportation Code - TRANSP § 283.206. Bond Provisions

Current as of January 01, 2024 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - Texas Transportation Code - TRANSP § 283.206. Bond Provisions - last updated January 01, 2024 | https://codes.findlaw.com/tx/transportation-code/transp-sect-283-206/

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