CHAPTER 6902. CRANE COUNTY WATER DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE B. FRESH WATER SUPPLY DISTRICTS
CHAPTER 6902. CRANE COUNTY WATER DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6902.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Director" means a member of the board.
(3) "District" means the Crane County Water District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.002. NATURE OF DISTRICT. The district is a
conservation and reclamation district created under Section 59,
Article XVI, Texas Constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The
accomplishment of the purposes stated in this chapter is for:
(1) the benefit of the people of this state; and
(2) the improvement of their property and industries.
(b) The district, in carrying out the purposes of this chapter,
will be performing an essential public function under the
constitution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.004. DISTRICT TERRITORY. The district includes all of
the territory in the boundaries of Crane County as the boundaries
of that county existed on January 1, 1985, and as the district
territory may have been modified under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.005. SUFFICIENT AUTHORITY FOR ENTITIES TO ACT. This
chapter provides sufficient authority to issue district bonds,
execute contracts and conveyances, and perform any other act or
procedure authorized under this chapter by the district, the City
of Crane, public agencies, special districts, and other political
subdivisions, without reference to other law or a restriction or
limitation contained in other law, except as specifically
provided by this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 6902.051. COMPOSITION OF BOARD. The district is governed
by a board composed of five directors appointed by the
Commissioners Court of Crane County. The directors occupy
numbered places on the board, with the places numbered as Places
1, 2, 3, 4, and 5.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.052. TERMS. Each appointed director shall serve for a
term of two years, with the terms of the directors appointed to
occupy Places 1 and 2 expiring on June 1 of each even-numbered
year and the terms of the directors appointed to occupy Places 3,
4, and 5 expiring on June 1 of each odd-numbered year.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.053. QUALIFICATIONS FOR OFFICE. (a) To be eligible
for appointment as a director, a person must be:
(1) a qualified district voter; and
(2) a district resident.
(b) A director is eligible for reappointment.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.054. EX OFFICIO DIRECTORS. The county judge of Crane
County and the mayor of the City of Crane shall serve as ex
officio directors. The county judge and mayor are entitled to
attend all board meetings and participate in all board
proceedings but are not entitled to vote on matters before the
board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.055. VACANCY. The Commissioners Court of Crane County
by appointment shall fill a vacancy on the board for the
unexpired term.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.056. REMOVAL FROM OFFICE. After reasonable notice and
a public hearing, the remaining members of the board may remove a
director from office for misfeasance, malfeasance, or wilful
neglect of duty. Reasonable notice and a public hearing are not
required if the director to be removed expressly waives the
notice and hearing in writing.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.057. QUORUM. Any three regular directors constitute a
quorum.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.058. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) The
district shall act through resolutions adopted by the board.
(b) All regular directors are entitled to vote on matters before
the board.
(c) The affirmative vote of at least three of the regular
directors is necessary to adopt a resolution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.059. OFFICERS AND ASSISTANTS. (a) The board shall
elect a president, vice president, secretary, and treasurer at
the first meeting of the board in March of each year or at any
time necessary to fill a vacancy.
(b) The board shall elect the president and vice president from
among the directors. The president and vice president shall
serve for terms of one year.
(c) The offices of secretary and treasurer:
(1) may be held by one person; and
(2) are not required to be held by a director.
(d) The board may appoint as assistant board secretary one or
more persons who are not directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.060. OFFICER DUTIES. (a) The board president shall
preside at board meetings and perform other duties prescribed by
the board.
(b) The board secretary is the official custodian of the
minutes, books, records, and seal of the board and shall perform
other duties and functions prescribed by the board. An assistant
board secretary may perform any duty or function of the board
secretary.
(c) The board treasurer shall perform duties and functions
prescribed by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.061. MEETINGS. The board shall have regular meetings
at times specified by board resolution and shall have special
meetings when called by the board president or by any three
directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.062. PERSONAL LIABILITY OF DIRECTORS. A director is
not personally liable for any bond issued or contract executed by
the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 6902.101. GENERAL POWERS. The district may exercise all
powers necessary or appropriate to carry out the purposes of this
chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.102. AUTHORITY TO SUE AND BE SUED. The district may
sue and be sued in the district's own name.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.103. SEAL. The board may adopt an official seal.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.104. BYLAWS; RULES. The board may adopt and enforce
bylaws and rules.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.105. GIFTS AND GRANTS. The district may request and
accept any appropriation, grant, allocation, subsidy, guaranty,
aid, service, material, or gift from any person.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.106. OFFICE. The district may operate and maintain an
office.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.107. EMPLOYEES, AGENTS, AND OFFICERS. The district
may appoint and determine the duties, tenure, qualifications, and
compensation of the officers, employees, agents, and professional
advisors and counselors of the district, including financial
consultants, accountants, attorneys, architects, engineers,
appraisers, and financial experts the board considers necessary.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.108. WATER CONSERVATION PROGRAM. (a) In this
section, "program of water conservation" means the practices,
techniques, and technologies that will reduce water consumption,
reduce water loss or waste, improve efficiency in water use, or
increase water recycling and reuse so that a water supply is
available for future uses.
(b) The district shall adopt and implement a program of water
conservation consistent with rules and criteria adopted and
enforceable by the Texas Commission on Environmental Quality for
similarly situated districts in the region.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.109. WATER PERMITS. (a) The district may obtain
water appropriation permits and diversion permits from the Texas
Commission on Environmental Quality.
(b) The district may acquire water appropriation permits from
owners of permits by contract or otherwise.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.110. GENERAL AUTHORITY OF PUBLIC AGENCIES AND
POLITICAL SUBDIVISIONS TO CONTRACT WITH DISTRICT. A
municipality, public agency, special district, or other political
subdivision of the state, including the City of Crane, may enter
into a contract or agreement with the district for a water
supply, or for any purpose relating to the district's powers or
functions, on terms agreed to by the parties. Approval, notice,
consent, or an election is not required in connection with a
contract or agreement.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.111. CONTRACTS TO SUPPLY WATER. (a) The district may
contract with municipalities, public agencies, special districts,
other political subdivisions of the state, and other entities,
including the City of Crane, for supplying water to them. The
district may sell water inside or outside the boundaries of the
district.
(b) A contract with the City of Crane must provide that the city
will pay to the district a portion of any surplus revenue from
the operation of the city's water system.
(c) The district may contract with a municipality, public
agency, special district, or other political subdivision of the
state for the rental or leasing of or for the operation of the
water production, water field, water supply, water filtration or
purification, or water supply facilities of the entity on the
consideration agreed to by the district and the entity.
(d) A contract may include the terms and be for the time agreed
to by the parties.
(e) A contract may provide that it will continue in effect until
bonds specified in it and refunding bonds issued in lieu of those
bonds are paid.
(f) The district may contract with the City of Crane for the
operation of the district's water facilities by the City of
Crane. An election is not required in connection with the
contract.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.112. SOURCES FOR WATER; ACQUISITION OF LAND; STORAGE
CAPACITY. (a) The district may acquire or construct inside or
outside the district one or more reservoirs and any work, water
well, water field, pump, plant, transmission line, or other
facility necessary or useful to divert, impound, drill for,
store, treat, or transport water to the City of Crane and others
for municipal, domestic, industrial, mining, oil flooding, or
other useful purposes.
(b) The district may acquire land or an interest in land, inside
or outside the district, for any work, water well, water field,
pump, plant, or other facility necessary or useful to divert,
impound, drill for, store, treat, or transport water to the City
of Crane and others for municipal, domestic, industrial, mining,
oil flooding, or any other useful purpose.
(c) The district may lease, purchase, or otherwise acquire
rights in and to storage and storage capacity in any reservoir
constructed or to be constructed by any person.
(d) The district may develop or otherwise acquire underground
sources of water.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.113. ACQUISITION, DISPOSAL, AND MANAGEMENT OF
PROPERTY. The district may:
(1) acquire, own, rent, lease, accept, hold, or dispose of
property or an interest in property, including a right or
easement, by any means, including purchase, exchange, gift,
assignment, condemnation, sale, or lease, to perform a duty or
exercise a power under this chapter;
(2) sell, assign, lease, encumber, mortgage, or otherwise
dispose of property or an interest in property, and release or
relinquish a right, title, claim, lien, interest, easement, or
demand by public or private sale, with or without public bidding,
notwithstanding any other law;
(3) lease or rent any land, buildings, structures, or facilities
to carry out the purposes of this chapter; and
(4) manage, operate, or improve property.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.114. CONSTRUCTION CONTRACTS. (a) The district may
award a construction contract that requires an expenditure of
more than $5,000 only after publication of notice to bidders once
each week for two consecutive weeks in a newspaper of general
circulation in the district.
(b) The notice is sufficient if it states:
(1) the time and place for opening the bids;
(2) the general nature of the work to be done or the material,
equipment, or supplies to be purchased; and
(3) the place where the terms of bidding and copies of the plans
and specifications may be obtained.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.115. CONVEYANCE OF LAND TO DISTRICT. A municipality,
public agency, special district, or other political subdivision
of the state, including the City of Crane, may lease, sell, or
otherwise convey its land or an interest in land to the district
for consideration that the parties agree is adequate. Approval,
notice, consent, or an election is not required in connection
with a conveyance, contract, or agreement.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.116. SURPLUS PROPERTY. Subject to the terms of a
resolution or deed of trust authorizing or securing bonds issued
by the district, the district may sell, lease, rent, trade, or
otherwise dispose of property the board considers not needed for
district purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.117. EMINENT DOMAIN. (a) To carry out a power
conferred by this chapter, the district may exercise the power of
eminent domain to acquire the fee simple title to land or any
other interest in land and other property and easements,
including water rights, land, or any interest in land needed for
water fields, water wells, or reservoir and dam and flood
easements above the probable high water line around any
reservoirs inside or outside the district.
(b) The district must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code.
(c) The board shall determine the amount and the type of the
interest in land, other property, and easements to be acquired.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.118. COST OF RELOCATING OR ALTERING PROPERTY. (a) In
this section, "sole expense" means the actual cost of the
relocating, raising, lowering, rerouting, or change in grade or
alteration of construction required under Subsection (b) to
provide a comparable replacement without enhancing the facility,
after deducting the net salvage value derived from the old
facility.
(b) If the district's exercise of eminent domain, police power,
or of another power conferred by this chapter requires
relocating, raising, lowering, rerouting, or changing the grade
of, or altering the construction of any railroad, electric
transmission, telegraph, or telephone line, conduit, pole,
property or facility, or pipeline, the action shall be
accomplished at the sole expense of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.119. RIGHTS-OF-WAY; EASEMENTS. The district has
necessary or useful rights-of-way and easements along, over,
under, and across all public, state, municipal, and county roads,
highways, and places for any of its purposes. The district shall
restore a facility used by the district to its previous condition
as nearly as possible at the sole expense of the district as
defined by Section 6902.118(a).
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 6902.151. TAX COLLECTION. The district shall contract with
Crane County to collect property taxes for the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.152. ADVISORY DUTIES OF CRANE COUNTY AUDITOR. The
Crane County auditor shall serve as an advisor to the district,
without remuneration, for the preparation of the district's
budget and the imposition of the district's property taxes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.153. DISTRICT MONEY. The district may acquire, hold,
use, and dispose of its money from any source.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.154. DEPOSITORY. (a) The board may select and shall
designate one or more banks inside or outside the district to
serve as the depository for the district's money.
(b) The district's money shall be deposited in the depository
designated by the board, except that:
(1) bond proceeds and money pledged to pay bonds, to the extent
provided in a resolution or trust indenture authorizing or
securing district bonds, may be deposited with another bank or
trustee named in the bond resolution or trust indenture; and
(2) money shall be remitted to each paying agent for the payment
of principal of and interest on the bonds.
(c) To the extent that money in a depository bank or trustee
bank is not insured by the Federal Deposit Insurance Corporation,
the money must be secured in the manner provided by law for the
security of county funds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.155. INVESTMENT OF DISTRICT MONEY. The board may
invest district money as determined by the board or in the manner
provided by a resolution or trust indenture authorizing or
securing district bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.156. DISTRICT FACILITIES EXEMPT FROM TAXATION AND
ASSESSMENT. The district is not required to pay a tax or
assessment on its facilities or any part of its facilities.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER E. GENERAL BOND PROVISIONS
Sec. 6902.201. AUTHORITY TO ISSUE BONDS. (a) The district may
issue bonds to carry out any power provided by this chapter. The
bonds must be authorized by a board resolution.
(b) The bonds may be payable from and secured by revenue or
property taxes, or both revenue and property taxes, of the
district, in the manner and under the terms of the resolution
authorizing the issuance of the bonds.
(c) The district may issue bonds, provide for and secure the
payment of the bonds, and provide for the rights of the
bondholders, in the manner and to the extent permitted by this
chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.202. FORM OF BONDS. (a) A district bond must be:
(1) issued in the district's name;
(2) signed by the president or vice president;
(3) attested by the secretary; and
(4) bear the district seal.
(b) The district seal may be impressed or printed on the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.203. MATURITY. District bonds must mature not later
than 40 years after the date of their issuance.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.204. ELECTION FOR BONDS PAYABLE FROM PROPERTY TAXES.
(a) The district may not issue bonds, except refunding bonds,
payable wholly or partly from property taxes unless the issuance
of the bonds is authorized by a majority of the district voters
at an election.
(b) The district may issue bonds not payable wholly or partly
from property taxes without an election.
(c) A bond election may be called by the board on a motion of
the board.
(d) A resolution calling a bond election must state:
(1) the time and each place for holding the election;
(2) the purpose for which the bonds are to be issued;
(3) the amount of the bonds;
(4) the form of the ballot; and
(5) other matters considered necessary or advisable by the
board.
(e) The board shall give notice of the election by publishing a
substantial copy of the resolution calling the election in a
newspaper with general circulation in the district once a week
for two consecutive weeks, with the first publication to be not
later than the 14th day before the date of the election.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.205. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. (a)
Bonds issued under this subchapter may be secured by a pledge of
all or part of the district's revenue, or by all or part of the
revenue of one or more district contracts or other revenue or
income specified by board resolution or a trust indenture
securing the bonds. The pledge may reserve the right, under
conditions specified by the pledge, to issue additional bonds
that will be on a parity with or subordinate to the bonds being
issued.
(b) The district may issue bonds secured by both property taxes
and revenue of the district.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.206. BONDS PAYABLE FROM PROPERTY TAXES. (a) If bonds
are issued payable wholly or partly from property taxes, the
board must impose a tax on the taxable property in the district
in an amount sufficient to pay the principal of and interest on
the bonds.
(b) The district may adopt the rate of a tax imposed under
Subsection (a) after giving consideration to the money received
from the pledged revenue that may be available for payment of
principal and interest, to the extent and in the manner permitted
by the resolution authorizing the issuance of the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.207. ADDITIONAL SECURITY. (a) Bonds not payable
wholly from ad valorem taxes may be additionally secured, at the
discretion of the board, by a deed of trust or mortgage lien on
physical property of the district, franchises, easements, water
rights and appropriation permits, leases, contracts, and all
rights appurtenant to the property, vesting in the trustee power
to:
(1) sell the property for the payment of the debt;
(2) operate the property; and
(3) take other action to further secure the bonds.
(b) A purchaser under a sale under the deed of trust lien, if
one is given:
(1) is the absolute owner of property, facilities, and rights
purchased; and
(2) is entitled to maintain and operate the property and
facilities.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
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, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.209. CHARGES FOR DISTRICT SERVICES. (a) If bonds
payable wholly from revenue are issued, the board shall set the
rates of compensation for water sold and services provided by the
district. The rates must be sufficient to:
(1) pay the expense of operating and maintaining district
facilities;
(2) pay the principal of and interest on the bonds when due; and
(3) maintain the reserve fund and other funds as provided in the
resolution authorizing the bonds.
(b) If bonds payable partly from revenue are issued, the board
shall set the rate of compensation for water sold and any other
services provided by the district. The rate must be sufficient
to ensure compliance with the resolution authorizing the bonds or
the trust indenture securing the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.210. USE OF BOND PROCEEDS. (a) The district may set
aside and use an amount of proceeds from the sale of bonds issued
under this subchapter for:
(1) the payment of interest expected to accrue during
construction not to exceed three years;
(2) a reserve interest and sinking fund; and
(3) other funds provided by the resolution authorizing the bonds
or in the trust indenture.
(b) The district may use proceeds from the sale of the bonds to
pay any expense necessarily incurred in accomplishing the purpose
of the district, including any expense of issuing and selling the
bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.211. APPOINTMENT OF RECEIVER. (a) On default or
threatened default in the payment of principal of or interest on
bonds issued under this subchapter that are payable wholly or
partly from revenue, a court may, on petition of the holders of
outstanding bonds, appoint a receiver for the district.
(b) The receiver may collect and receive all district income,
except taxes, employ and discharge district agents and employees,
take charge of money on hand, except money received from taxes,
unless commingled, and manage the proprietary affairs of the
district without the consent of the board.
(c) The receiver may be authorized to sell or contract for the
sale of water or renew those contracts with the approval of the
court that appointed the receiver.
(d) The court may vest the receiver with any other power or duty
the court finds necessary to protect the bondholders.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.212. LIMITATION ON RIGHTS OF HOLDERS. The resolution
authorizing the bonds or the trust indenture securing the bonds
may limit or qualify the rights of the holders of less than all
of the outstanding bonds payable from the same source to
institute or prosecute litigation affecting the district's
property or income.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.213. BONDS EXEMPT FROM TAXATION. A bond issued under
this chapter, the transfer of the bond, and income from the bond,
including profits made on the sale of the bond, are exempt from
taxation in this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.214. EXCLUSION OF TERRITORY AFTER ISSUANCE OF BONDS.
Territory may not be excluded from the district after the
issuance of bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER F. REFUNDING BONDS
Sec. 6902.251. AUTHORITY TO ISSUE REFUNDING BONDS; APPLICABILITY
OF LAW RELATING TO OTHER BONDS. (a) The district may issue
refunding bonds to refund outstanding bonds issued under this
chapter and interest on those bonds.
(b) The provisions of this chapter relating to the issuance by
the district of other bonds, their security, their approval by
the attorney general, and the remedies of the bondholders apply
to refunding bonds.
(c) An election is not required for refunding bonds.
(d) The district may also issue refunding bonds under any other
applicable law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.252. TERMS OF ISSUANCE OF REFUNDING BONDS. Refunding
bonds may:
(1) be issued to refund bonds of more than one series;
(2) combine the pledges for the outstanding bonds for the
security of the refunding bonds; or
(3) be secured by a pledge of other or additional revenue or
mortgage liens.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.253. REGISTRATION OF REFUNDING BONDS BY COMPTROLLER.
(a) The comptroller shall register the refunding bonds on the
surrender and cancellation of the bonds to be refunded.
(b) Instead of issuing bonds to be registered on the surrender
and cancellation of the bonds to be refunded, the district, in
the resolution authorizing the issuance of the refunding bonds,
may provide for the sale of the refunding bonds and the deposit
of the proceeds, together with other money that may be available,
in a bank at which the bonds to be refunded are payable. In that
case, the refunding bonds may be issued in an amount sufficient
to pay the principal of and interest and any required redemption
premium on the bonds to be refunded to any redemption date or to
their maturity date, and the comptroller shall register the
refunding bonds without the surrender and cancellation of the
bonds to be refunded.
(c) The provisions described by Subsection (b) constitute the
making of firm banking arrangements for the discharge and final
payment or redemption of the bonds to be refunded or to be paid
or redeemed.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6902.254. ESCROW AGREEMENT. (a) The district may enter
into an escrow or similar agreement with any place of payment,
paying agent, or trustee with respect to the safekeeping,
investment, administration, and disposition of a deposit made
under Section 6902.253(b).
(b) A deposit under Section 6902.253(b) may be invested only in
direct obligations of the United States, including obligations
the principal of and interest on which are unconditionally
guaranteed by the United States, that mature and bear interest
payable at the times and in amounts sufficient to provide for the
scheduled payment or redemption of the bonds to be refunded. The
obligations may be in book-entry form.
(c) The district must enter into an agreement under Subsection
(a) if a bond to be refunded is scheduled to be paid or redeemed
on a date later than the next scheduled interest payment date.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.