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Texas Transportation Code - Section 283.206. Bond Provisions

Legal Research Home > Texas Lawyer > Transportation Code > Texas Transportation Code - Section 283.206. Bond Provisions

§ 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, § 1, eff. Sept. 1, 1995.                    

Last modified: August 10, 2007