CHAPTER 1509. OBLIGATIONS FOR OTHER MUNICIPAL PURPOSES
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES
SUBTITLE J. SPECIFIC AUTHORITY FOR MUNICIPALITIES TO ISSUE
SECURITIES
CHAPTER 1509. OBLIGATIONS FOR OTHER MUNICIPAL PURPOSES
SUBCHAPTER A. BONDS FOR FACILITIES TO BE SOLD OR LEASED TO PUBLIC
OR PRIVATE ENTITIES
Sec. 1509.001. AUTHORITY TO ACQUIRE PROPERTY FOR LEASE TO PUBLIC
OR PRIVATE ENTITY. (a) A municipality may acquire land and may
construct or acquire a building or other facility for the purpose
of leasing the land, building, or other facility to:
(1) a political subdivision or state agency for public use;
(2) an individual, private corporation, or other private entity
for use in manufacturing or another commercial activity; or
(3) if the municipality is a defense community as defined by
Section 397.001, Local Government Code, the federal government to
enhance the military value of a military facility located in or
near the defense community.
(b) A municipality may not acquire land under Subsection (a) by
eminent domain.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
1302, Sec. 1, eff. June 18, 2005.
Sec. 1509.002. AUTHORITY TO ACQUIRE PROPERTY FOR SALE OR LEASE
TO INSTITUTION OF HIGHER EDUCATION. (a) In this section,
"institution of higher education" has the meaning assigned by
Section 61.003, Education Code.
(b) This section applies only to a municipality that:
(1) has a population of more than 15,000 but less than 16,000;
and
(2) is located in two counties with populations of 325,000 or
more but less than 3.5 million.
(c) A municipality may acquire land and may construct or acquire
a building or other facility for the purpose of selling or
leasing the land, building, or other facility to an institution
of higher education that will provide a significant number of
vocational and vocational-technical education courses in the
facility for public use.
(d) The municipality may sell or lease the property:
(1) without public notice or bidding; and
(2) on terms the governing body of the municipality finds
acceptable.
(e) A municipality may not acquire land under this section by
eminent domain.
(f) A sale under Subsection (c) may be by an installment sale
agreement or otherwise.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 32, eff.
Sept. 1, 2001.
Sec. 1509.003. AUTHORITY TO ISSUE BONDS. To develop and
diversify the economy of this state and eliminate unemployment or
underemployment in this state under the authority granted by
Section 52-a, Article III, Texas Constitution, a municipality may
issue and sell bonds to finance an action taken under Section
1509.001 or 1509.002.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.004. BOND PAYMENTS FROM REVENUE OR TAXES. (a) A
municipality may provide for payment of the principal of and
interest on bonds issued under this subchapter by:
(1) pledging all or part of the revenue from the sale or lease
of all or part of the land, building, or other facility financed
by the bonds, after deduction of reasonable operation and
maintenance costs;
(2) imposing an annual ad valorem tax; or
(3) combining those sources.
(b) A municipality with a population of 80,000 or more may also
provide for the payment of the principal of or interest on the
bonds by pledging all or any part of other municipal revenue that
is not prohibited from being used for that payment.
(c) A municipality with a population of at least 50,000 that has
taken action under Section 1509.001(a)(3) may also provide for
the payment of the principal of or interest on the bonds issued
to finance the action taken by pledging all or any part of other
municipal revenue that the municipality is not prohibited from
using for that payment.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
1302, Sec. 2, eff. June 18, 2005.
Sec. 1509.005. ELECTION REQUIRED TO SECURE BONDS WITH TAX
REVENUE. Bonds to be issued under this subchapter that are
payable in whole or in part from ad valorem taxes must be
approved, before issuance, by a vote of a majority of the
registered voters of the municipality voting on the issue.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.006. CONTENTS OF ORDINANCE, ORDER, OR RESOLUTION
AUTHORIZING BONDS. (a) In the ordinance, order, or resolution
authorizing the issuance of bonds under this subchapter, the
governing body of a municipality may provide for the deposit and
accounting of money and the establishment and maintenance of an
interest and sinking fund, a reserve fund, or another fund.
(b) The ordinance, order, or resolution may make additional
covenants relating to the bonds, the pledged revenue, or the
operation and maintenance of any land, building, or other
facility the revenue of which is pledged for bond payments.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.007. ADOPTION AND EXECUTION OF DOCUMENTS. The
governing body of a municipality may adopt and have executed any
proceeding or instrument necessary and convenient in:
(1) the issuance of bonds under this subchapter; or
(2) the acquisition and sale or lease of any land, building, or
other facility under Section 1509.001 or 1509.002.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.008. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.009. IMPOSITION OF TAX. (a) The governing body of a
municipality may annually impose ad valorem taxes to pay the
principal of and interest on bonds issued under this subchapter
that are payable in whole or in part from ad valorem taxes only
if the taxes are approved at an election held under Section
1509.005.
(b) A municipality may not impose ad valorem taxes to pay the
principal of or interest on bonds issued under this subchapter
payable wholly from revenue from one or more leases or other
contracts made under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.010. GRANTS FOR PRISONS OR LAW ENFORCEMENT FACILITIES
NOT PROHIBITED. This subchapter does not prohibit a municipality
from making a grant of money or property to an agency of this
state to assist the agency in acquiring or developing a site for
a prison or other law enforcement detention facility, regardless
of whether the site is located inside or outside the municipal
boundaries.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER C. BONDS FOR FARMERS' MARKETS IN MUNICIPALITIES WITH
POPULATION OF MORE THAN 650,000
Sec. 1509.101. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a municipality with a population of more than 1.1
million.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 33, eff.
Sept. 1, 2001.
Sec. 1509.102. DEFINITION. In this subchapter, "farmers'
market" means a public marketplace where a person is permitted to
sell agricultural and other products.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.103. AUTHORITY FOR FARMERS' MARKET. A municipality
may:
(1) acquire, lease as lessor or lessee, construct, improve,
enlarge, or operate a farmers' market; and
(2) contract with any public or private entity to perform any
function authorized by this section.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.104. AUTHORITY TO ISSUE REVENUE BONDS. The governing
body of a municipality may issue revenue bonds for a purpose
authorized by Section 1509.103.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.105. PLEDGE OF REVENUE. A municipality may pledge all
or part of the revenue, income, or receipts from the farmers'
market to the payment of the bonds, including principal,
interest, and any other amounts required or permitted in
connection with the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.106. ADDITIONAL SECURITY. (a) Bonds issued under
this subchapter may be additionally secured by:
(1) an encumbrance on any real property relating to a farmers'
market owned or to be acquired by the municipality;
(2) an encumbrance on any personal property appurtenant to real
property described by Subdivision (1); or
(3) a pledge of any portion of a grant, donation, or revenue, or
income received or to be received from the United States or any
other public or private source.
(b) The governing body of the municipality may authorize the
execution of a trust indenture, mortgage, deed of trust, or other
instrument as evidence of the encumbrance.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.107. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.108. ADDITIONAL BONDS. The ordinance authorizing the
issuance of bonds under this subchapter may provide for the
subsequent issuance of additional parity bonds or subordinate
lien bonds under terms specified in the ordinance.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.109. SALE OF BONDS. A municipality may sell bonds
issued under this subchapter in the manner and under the terms
provided by the ordinance authorizing the issuance of the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.110. REVIEW AND APPROVAL OF CONTRACTS RELATING TO
BONDS. (a) If bonds issued under this subchapter state that the
bonds are secured by a pledge of revenue or rents from a
contract, including a lease contract, a copy of the contract and
the proceedings related to it must be submitted to the attorney
general.
(b) If the attorney general finds that the bonds have been
authorized and the contract has been made in accordance with law,
the attorney general shall approve the contract.
(c) After the bonds are approved and registered as provided by
Chapter 1202 and the contract is approved under Subsection (b),
the contract is incontestable in a court or other forum for any
reason and is a valid and binding obligation for all purposes in
accordance with its terms.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.111. CHARGES. (a) The governing body of a
municipality may impose and collect charges for the use or
availability of the farmers' market.
(b) The municipality shall impose and collect pledged charges in
an amount that will be at least sufficient, with any other
pledged resources, to provide for the payment of:
(1) the principal of, interest on, and any other amounts
required in connection with the bonds; and
(2) to the extent required by the ordinance authorizing the
issuance of the bonds:
(A) expenses incurred in connection with the bonds; and
(B) operation, maintenance, and other expenses incurred in
connection with the farmers' market.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.112. REFUNDING BONDS. (a) A municipality may refund
or otherwise refinance bonds issued under this subchapter by
issuing refunding bonds under any terms provided by an ordinance
of the governing body of the municipality.
(b) All appropriate provisions of this subchapter apply to the
refunding bonds. The refunding bonds shall be issued in the
manner provided by this subchapter for other bonds.
(c) The refunding bonds may be sold and delivered in amounts
sufficient to pay the principal of and interest and any
redemption premium on the bonds to be refunded, at maturity or on
any redemption date.
(d) The refunding bonds may be issued to be exchanged for the
bonds to be refunded by them. In that case, the comptroller shall
register the refunding bonds and deliver them to the holder of
the bonds to be refunded as provided by the ordinance authorizing
the refunding bonds. The exchange may be made in one delivery or
in installment deliveries.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.113. PUBLIC PURPOSE. The acquisition, construction,
improvement, enlargement, equipment, operation, or maintenance of
property or a facility for providing a farmers' market is a
public purpose and a proper municipal function.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.114. CONFLICT OR INCONSISTENCY WITH OTHER LAW. When
bonds are issued under this subchapter, to the extent of any
conflict or inconsistency between this subchapter and another
law, this subchapter controls.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER D. BONDS FOR GARBAGE RECLAMATION PROJECTS
Sec. 1509.151. DEFINITION. In this chapter, "garbage
reclamation project" means an undertaking by which solid waste
products are converted into a form usable by persons for any
purpose, including the production of energy.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.152. AUTHORITY FOR GARBAGE RECLAMATION PROJECTS. A
municipality may own and operate a garbage reclamation project.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.153. AUTHORITY TO ISSUE BONDS. If necessary to
exercise the authority granted by Section 1509.152, the governing
body of a municipality may issue and sell bonds to finance:
(1) the purchase, lease, or acquisition by another method of
land, a facility, equipment, or supplies;
(2) the construction or improvement of a facility; and
(3) the installation of equipment.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.154. BOND PAYMENTS FROM REVENUE OR TAXES. The
governing body of the municipality may provide for payment of the
principal of and interest on bonds issued under this subchapter
by:
(1) pledging all or part of the revenue from the ownership or
operation of a garbage reclamation project;
(2) imposing an ad valorem tax; or
(3) combining those sources.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.155. ADDITIONAL SECURITY. (a) Bonds issued under
this subchapter may be secured additionally by an encumbrance on
part or all of the physical property of the garbage reclamation
project and each right relating to that property, vesting in the
trustee the power to:
(1) operate the property;
(2) sell the property to pay the debt; or
(3) take any other action to secure the bonds.
(b) Regardless of an encumbrance on the property, a trust
indenture on the property may:
(1) contain any provision that the governing body of the
municipality prescribes for the security of the bonds and the
preservation of the trust estate;
(2) provide for amendment or modification of the trust
indenture; and
(3) provide for investment of revenue from the garbage
reclamation project.
(c) A purchaser under a sale under the encumbrance of the
property:
(1) is the absolute owner of the property and the rights
purchased; and
(2) may maintain and operate the property.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.156. ELECTION. (a) The governing body of the
municipality may not issue bonds under this subchapter unless the
issuance is authorized by a majority of the qualified voters of
the municipality voting at an election held for that purpose.
(b) The governing body shall hold the election, to the extent
practicable, in compliance with Chapter 1251.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.157. BALLOT PROPOSITION. (a) At an election to
authorize bonds payable wholly from revenue from the garbage
reclamation project, the ballots shall be printed to provide for
voting for or against the proposition: "The issuance of bonds for
a garbage reclamation project in the amount of $__________ and
the pledge of net revenue from the project for the payment of the
bonds."
(b) At an election to authorize bonds payable wholly from ad
valorem taxes, the ballots shall be printed to provide for voting
for or against the proposition: "The issuance of bonds for a
garbage reclamation project in the amount of $__________ and the
imposition of taxes for payment of the bonds."
(c) At an election to authorize bonds payable from both revenue
from the garbage reclamation project and ad valorem taxes, the
ballots shall be printed to provide for voting for or against the
proposition: "The issuance of bonds for a garbage reclamation
project in the amount of $__________ and the pledge of net
revenue and the imposition of ad valorem taxes adequate to
provide for the payment of the bonds."
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.158. CONTENTS OF ORDER OR RESOLUTION AUTHORIZING
BONDS. (a) An order or resolution of the governing body of the
municipality authorizing the issuance of bonds under this
subchapter may provide for the flow of funds and the
establishment and maintenance of an interest and sinking fund, a
reserve fund, or another fund.
(b) The order or resolution may:
(1) prohibit the further issuance of bonds or other obligations
payable from the pledged revenue; or
(2) reserve the right to issue additional bonds to be secured by
a pledge of and payable from the revenue that are on a parity
with, or subordinate to, the lien and pledge on the revenue being
used to support the bonds being issued.
(c) The order or resolution may contain any other provision or
covenant, including a covenant with respect to the bonds, the
pledged revenue, or the operation and maintenance of the garbage
reclamation project the revenue of which is pledged.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.159. ADOPTION AND EXECUTION OF DOCUMENTS. The
governing body of the municipality may adopt and have executed
any other proceeding or instrument necessary and convenient in
the issuance of bonds under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.160. MATURITY. A bond issued under this subchapter
must mature not later than 40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.161. IMPOSITION OF TAX. (a) The governing body of
the municipality may annually impose ad valorem taxes to pay
bonds issued under this subchapter that are payable in whole or
in part from ad valorem taxes.
(b) The governing body may not impose ad valorem taxes to pay
the principal of or interest on bonds issued under this
subchapter payable wholly from revenue from a garbage reclamation
project.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.162. REFUNDING BONDS. (a) A municipality may issue
refunding bonds to refund all or any part of its outstanding
bonds issued under this subchapter, including matured but unpaid
interest coupons. The comptroller shall register refunding bonds
on the surrender and cancellation of the bonds being refunded.
The refunding may take place in one delivery or in installment
deliveries.
(b) The refunding bonds may be payable from the same sources as
the bonds to be refunded or from other additional sources.
(c) A municipality may, in the order or resolution authorizing
the issuance of the refunding bonds, provide for the sale of the
refunding bonds and the deposit of the proceeds in the place at
which the bonds to be refunded are payable. In that case, the
refunding bonds may be issued before the cancellation of the
bonds to be refunded.
(d) If refunding bonds are issued before cancellation of the
bonds to be refunded, the municipality shall deposit an amount
sufficient to pay the principal of and interest on the bonds to
be refunded to their maturity dates, or to their option dates if
the bonds have been called for payment before maturity according
to their terms, in each place at which the bonds to be refunded
are payable. The comptroller shall register the refunding bonds
without the surrender and cancellation of bonds to be refunded.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.163. EXEMPTION FROM TAXATION. A bond issued under
this subchapter, any transaction related to the bond, and profits
made in the sale of the bond are exempt from taxation by this
state or by a municipality or other political subdivision of this
state.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER E. BONDS FOR ACQUISITION OF PROPERTY BY MUNICIPALITY
OPERATING TOLL BRIDGE OVER RIO GRANDE
Sec. 1509.201. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a municipality that owns and operates a portion
of a toll bridge over the Rio Grande.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.202. AUTHORITY FOR PROPERTY, FACILITY, OR ACTIVITY. A
municipality may acquire, construct, improve, enlarge, equip,
operate, or maintain property, a facility, or an activity for a
public purpose.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.203. AUTHORITY TO ISSUE REVENUE BONDS. To provide
money to acquire, construct, improve, enlarge, or equip property
or a facility for a public purpose, the governing body of a
municipality may issue revenue bonds that are payable from and
secured by a lien on and pledge of all or any part of the
revenue, income, or receipts the municipality receives from its
ownership and operation of:
(1) a portion of a toll bridge over the Rio Grande; or
(2) property, a facility, or an activity.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.204. PLEDGE OF REVENUE. A municipality may pledge to
the payment of bonds issued under this subchapter, including the
principal of, interest on, or another amount required or
permitted to be paid in connection with the bonds, all or any
part of its revenue, income, or receipts from:
(1) a charge authorized by Section 1509.210; or
(2) another resource.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.205. ADDITIONAL SECURITY. (a) Bonds issued under
this subchapter may be additionally secured by:
(1) an encumbrance on any real property owned by the
municipality;
(2) an encumbrance on any personal property appurtenant to that
real property; or
(3) a pledge of any portion of a grant, donation, revenue, or
income received or to be received from the United States or any
other public or private source.
(b) The governing body of the municipality may authorize the
execution of a trust indenture, mortgage, deed of trust, or other
instrument as evidence of the encumbrance.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.206. BONDS NOT PAYABLE FROM TAXES. A bond issued
under this subchapter:
(1) is payable only from the revenue, income, receipts, or
another resource of the municipality as provided by this
subchapter; and
(2) is not a tax obligation of the municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.207. MATURITY. A bond issued under this subchapter
must mature not later than 50 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.208. ADDITIONAL BONDS. The ordinance authorizing the
issuance of bonds under this subchapter may provide for the
subsequent issuance of additional parity or subordinate lien
bonds under terms specified in the ordinance.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.209. SALE OF BONDS. A municipality may sell bonds
issued under this subchapter in the manner and on the terms
provided by the bond authorization.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.210. CHARGES. (a) The governing body of the
municipality may impose and collect a charge for the use or
availability of:
(1) municipal property, including a toll bridge or other
facility; or
(2) a municipal activity or operation.
(b) The governing body shall impose and collect pledged charges
in an amount that will be at least sufficient, with any other
pledged resource, to provide for the payment of:
(1) the principal of, interest on, and any other amount required
in connection with the bonds; and
(2) to the extent required by the ordinance authorizing the
issuance of the bonds:
(A) expenses incurred in connection with the bonds; and
(B) operation, maintenance, and other expenses incurred in
connection with the property, toll bridge, or other facility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.211. LEASE OR RENTAL OF PROPERTY OR FACILITY TO UNITED
STATES. The municipality may lease or rent to the United States
any property or facility acquired, constructed, improved,
enlarged, or equipped in whole or in part with proceeds from the
sale of bonds issued under this subchapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.212. REFUNDING BONDS. (a) A municipality may refund
or otherwise refinance bonds issued under this subchapter by
issuing refunding bonds under any terms provided by an ordinance
of the governing body of the municipality.
(b) All appropriate provisions of this subchapter apply to the
refunding bonds. The refunding bonds shall be issued in the
manner provided by this subchapter for other bonds.
(c) The refunding bonds may be sold and delivered in amounts
sufficient to pay the principal of and interest and any
redemption premium on the bonds to be refunded, at maturity or on
any redemption date.
(d) The refunding bonds may be issued to be exchanged for the
bonds to be refunded by them. In that case, the comptroller shall
register the refunding bonds and deliver them to the holder of
the bonds to be refunded as provided by the ordinance authorizing
the refunding bonds. The exchange may be made in one delivery or
in installment deliveries.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.213. PUBLIC PURPOSE. The acquisition, construction,
improvement, enlargement, or equipment by a municipality of
property or a facility for lease or rental to the United States
for use in performing a federal governmental function in the
municipality or at or near and relating to a toll bridge of the
municipality is a public purpose and a proper municipal function,
regardless of whether the toll bridge or the federal facility
relating to the bridge is located inside or outside the municipal
boundaries.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.214. CONFLICT OR INCONSISTENCY WITH OTHER LAW. When
bonds are being issued under this subchapter, to the extent of a
conflict or inconsistency between this subchapter and another
law, this subchapter controls.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER Z. MISCELLANEOUS PROVISIONS
Sec. 1509.901. PLEDGE OF REVENUE FROM TOLL BRIDGE CONTRACT. A
municipality that receives revenue because of a contract with
another municipality relating to the operation of a toll bridge
over the Rio Grande may appropriate or pledge all or any part of
that revenue to:
(1) redeem or pay the principal of or interest on any bond,
note, or warrant that the municipality is authorized to issue; or
(2) retire any other debt the municipality is authorized to
incur.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1509.902. AUTHORITY TO ISSUE BONDS PAYABLE FROM TOLL BRIDGE
REVENUE; PLEDGE OF TOLL BRIDGE REVENUE. (a) This section
applies only to a municipality that:
(1) has located within its municipal boundaries or within 15
miles of its municipal boundaries a toll bridge over the Rio
Grande; and
(2) receives revenue because of that bridge, including revenue
received under a contract with another municipality relating to
the operation of that bridge.
(b) The municipality may issue revenue bonds under this section
payable from revenue received because of the toll bridge to
acquire, construct, repair, extend, or improve any public
building, utility system, or other public property or facility
the governing body of the municipality considers necessary and
appropriate.
(c) A municipality may issue the bonds without an election if
the governing body of the municipality authorizes the issuance by
ordinance.
(d) Subject to any covenant relating to an outstanding bond of
the municipality, a municipality may appropriate or pledge to the
payment of bonds issued under this section all or any part of the
revenue the municipality receives because of the toll bridge.
(e) A bond issued under this section must mature not later than
40 years after its date.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.