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Texas Transportation Code - TRANSP § 452.357. Security Pledged

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

(a) To secure the payment of an authority's bonds, the authority may:

(1) pledge all or part of revenue realized from any tax that the authority may impose;

(2) pledge any part of the revenue of the public transportation system;

(3) mortgage any part of the public transportation system, including any part of the system subsequently acquired;

(4) pledge all or part of funds the federal government has committed to the authority as grants in aid; and

(5) provide that a pledge of revenue described by Subdivision (1) or (2) is a first lien or charge against that revenue.

(b) Under Subsection (a)(3) an authority may, subject to the terms of the bond indenture or the resolution authorizing the issuance of the bonds, encumber a separate item of the public transportation system and acquire, use, hold, or contract for the property by lease, chattel mortgage, or other conditional sale including an equipment trust transaction.

(c) An authority may not issue bonds secured by ad valorem tax revenue.

(d) An authority is not prohibited by this subchapter from encumbering one or more public transportation systems to purchase, construct, extend, or repair one or more other public transportation systems of the authority.

(e) The authority may pledge funds described by Subsection (a)(4):

(1) as the sole security for the bonds; or

(2) in addition to any other security described by this section.

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Cite this article: FindLaw.com - Texas Transportation Code - TRANSP § 452.357. Security Pledged - last updated January 01, 2024 | https://codes.findlaw.com/tx/transportation-code/transp-sect-452-357/

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