Texas Utilities Code - Section 164.005. Contractual Obligations As Lien On System Revenue
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§ 164.005. CONTRACTUAL OBLIGATIONS AS LIEN ON SYSTEM
REVENUE. (a) If the electric utility facilities financed,
acquired, constructed, or completed are a part of a utility system
of a political subdivision, the obligation to make the contract
payments to acquire an ownership interest is a lien on the revenue
of the system on a parity with the outstanding bonds of the system
to the extent permitted in the ordinance or resolution authorizing
or the deed of trust or indenture securing the payment of the
outstanding bonds.
(b) If the ordinance or resolution authorizing or the deed
of trust or trust indenture securing the revenue bonds of a utility
system provides for the subsequent issuance of additional bonds or
the creation of a contractual obligation described by Section
164.004 and provides that the payments to be made for the security
or payment of the subsequent bonds or contractual obligation are to
be on a parity with the previously issued bonds or bonds then to be
issued, the political subdivision may, subject to any conditions
contained in that ordinance, resolution, deed of trust, or trust
indenture, authorize, issue, and sell additional bonds or incur the
contractual obligation in a different series payable from the
entire revenue of the utility system on a parity with the previously
issued bonds or bonds then to be issued and secured by a lien on the
revenue of the system on a parity with the lien securing the
previously issued bonds or bonds then to be issued. This subsection
applies without regard to whether the previously issued bonds:
(1) were issued before August 29, 1977; or
(2) are an original issue or a refunding issue.
(c) A political subdivision may pledge the revenue of a
utility system to pay contract payments to acquire an ownership
interest in an electric utility facility under this chapter.
(d) In this section, "utility system" includes a combined
utility system.
Acts 1997, 75th Leg., ch. 166, § 1, eff. Sept. 1, 1997.
Section: 163.122 163.123 163.124 164.001 164.002 164.003 164.004 164.005 164.006 181.001 181.002 181.003 181.004 181.005 181.006
Last modified: August 10, 2007
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