Texas Special District Local Laws Code § 8506.202 State Pledge Regarding Rights And Remedies Of Bondholders

Sec. 8506.202. STATE PLEDGE REGARDING RIGHTS AND REMEDIES OF BONDHOLDERS. This chapter does not deprive this state of its power to regulate and control rates or charges to be collected for the use of water, water connections, power, electric energy, or another service. The state pledges to and agrees with the purchasers and successive holders of the bonds issued under this chapter that the state will not limit or alter the power this chapter gives the authority to establish and collect rates and charges that will produce revenue sufficient to pay the items specified by Section 8506.154(b) or in any way impair the rights or remedies of the holders of the bonds, or of any person in their behalf, until the following are fully met and discharged:

(1) the bonds;

(2) the interest on the bonds;

(3) interest on unpaid installments of interest;

(4) all costs and expenses in connection with any action or proceedings by or on behalf of the bondholders; and

(5) all other obligations of the authority in connection with the bonds.

Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.05, eff. April 1, 2017.


Text of section effective on April 01, 2017


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Last modified: September 28, 2016