Sec. 370.036. TRANSFER OF BONDED TURNPIKE PROJECT TO DEPARTMENT. (a) An authority may transfer to the department a turnpike project of the authority that has outstanding bonded indebtedness if the commission:
(1) agrees to the transfer; and
(2) agrees to assume the outstanding bonded indebtedness.
(b) The commission may assume the outstanding bonded indebtedness only if the assumption:
(1) is not prohibited under the terms of an existing trust agreement or indenture securing bonds or other obligations issued by the commission for another project;
(2) does not prevent the commission from complying with covenants of the commission under an existing trust agreement or indenture; and
(3) does not cause a rating agency maintaining a rating on outstanding obligations of the commission to lower the existing rating.
(c) If the commission agrees to the transfer under Subsection (a), the authority shall convey the turnpike project and any real property acquired to construct or operate the turnpike project to the department.
(d) At the time of a conveyance under this section, the commission shall designate the turnpike project as part of the state highway system. After the designation, the authority has no liability, responsibility, or duty to maintain or operate the transferred turnpike project.
Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21, 2003.
Section: Previous 370.004 370.031 370.0311 370.0315 370.032 370.033 370.034 370.036 370.037 370.038 370.039 370.071 370.072 370.073 370.111 NextLast modified: September 28, 2016