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Texas Transportation Code - Section 284.042. Use Of Bond Proceeds; Lien

Legal Research Home > Texas Lawyer > Transportation Code > Texas Transportation Code - Section 284.042. Use Of Bond Proceeds; Lien

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

Last modified: August 10, 2007