Sec. 6902.208. TRUST INDENTURE. (a) A bond issued under this subchapter, including a refunding bond, that is not payable wholly from property taxes may be additionally secured by a trust indenture. The trustee may be a bank with trust powers located inside or outside the state.
(b) A trust indenture, regardless of the existence of the deed of trust or mortgage lien on the property, may:
(1) provide for the security of the bonds and the preservation of the trust estate in the manner prescribed by the board;
(2) provide for amendment or modification of the trust indenture;
(3) provide for the issuance of bonds to replace lost or mutilated bonds;
(4) condition the right to spend district money or sell district property on the approval of a licensed engineer selected as provided by this chapter; and
(5) provide for the investment of district money.
Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.06, eff. April 1, 2009.
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