Sec. 283.201. BOND PROCEEDS. (a) Except as provided in Subsection (b), the proceeds of bonds issued under this chapter shall be:
(1) used only to pay the cost of the project described by Section 283.202; and
(2) disbursed consistent with the terms of the bond instrument.
(b) Bond proceeds remaining after the cost of the project has been paid in full shall be used to pay interest on and retire the bonds.
(c) Unless otherwise provided in a bond instrument, if the bond proceeds are insufficient to pay the cost of the project, additional bonds may be issued up to the amount of the deficit and the bonds are:
(1) considered part of the same issue as the bonds first issued; and
(2) entitled to payment from the same fund without preference or priority of the bonds first issued.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Section: Previous 283.001 283.002 283.003 283.101 283.102 283.103 283.104 283.201 283.202 283.203 283.204 283.205 283.206 283.207 283.208 NextLast modified: September 28, 2016