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Texas Transportation Code - Section 283.201. Bond Proceeds

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§ 283.201. BOND PROCEEDS.  (a) Except as provided in 
Subsection (b), the proceeds of bonds issued under this chapter 
shall be:
		(1)  used only to pay the cost of the project described 
by Section 283.202;  and
		(2)  disbursed consistent with the terms of the bond 
instrument.            
	(b)  Bond proceeds remaining after the cost of the project 
has been paid in full shall be used to pay interest on and retire the 
bonds.
	(c)  Unless otherwise provided in a bond instrument, if the 
bond proceeds are insufficient to pay the cost of the project, 
additional bonds may be issued up to the amount of the deficit and 
the bonds are:
		(1)  considered part of the same issue as the bonds 
first issued;  and      
		(2)  entitled to payment from the same fund without 
preference or priority of the bonds first issued.

Acts 1995, 74th Leg., ch. 165, § 1, eff. Sept. 1, 1995.                    

Last modified: August 10, 2007