CHAPTER 6906. CORYELL CITY WATER SUPPLY DISTRICT
SPECIAL DISTRICT LOCAL LAWS CODE
TITLE 6. WATER AND WASTEWATER
SUBTITLE B. FRESH WATER SUPPLY DISTRICTS
CHAPTER 6906. CORYELL CITY WATER SUPPLY DISTRICT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 6906.001. DEFINITIONS. In this chapter:
(1) "Board" means the district's board of directors.
(2) "Bond" means a bond or note.
(3) "Director" means a member of the board.
(4) "District" means the Coryell City Water Supply District.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.002. NATURE OF DISTRICT. The district is a
conservation and reclamation district in Coryell County 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. 6906.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The
district is created to serve a public use and benefit.
(b) All land and other property included in the boundaries of
the district and other areas to be served by the district's works
and projects will benefit from the works and projects
accomplished by the district under the powers conferred by
Section 59, Article XVI, Texas Constitution.
(c) The accomplishment of the purposes stated in this chapter is
for the benefit of the people of this state for the improvement
of their property and industries. 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. 6906.004. DISTRICT TERRITORY. (a) The district is
composed of the territory described by Section 2, Chapter 435,
Acts of the 66th Legislature, Regular Session, 1979, as that
territory may have been modified under:
(1) Subchapter J, Chapter 49, Water Code; or
(2) other law.
(b) The boundaries and field notes of the district form a
closure. A mistake in the field notes or in copying the field
notes in the legislative process does not affect:
(1) the district's organization, existence, and validity;
(2) the district's right to issue any type of bond for a purpose
for which the district is created or to pay the principal of and
interest on the bond;
(3) the district's right to impose a tax; or
(4) the legality or operation of the district or its governing
body.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER B. BOARD OF DIRECTORS
Sec. 6906.051. COMPOSITION OF BOARD; TERMS. (a) The district
is governed by a board of 11 directors, each of whom occupies a
numbered place on the board.
(b) Directors serve staggered two-year terms, with the terms of
the directors occupying Places 1, 2, 3, 4, and 5 expiring on
April 1 of each even-numbered year and the terms of the directors
occupying Places 6, 7, 8, 9, 10, and 11 expiring April 1 of each
odd-numbered year.
(c) In March of each year, the Commissioners Court of Coryell
County shall appoint directors to succeed directors whose term of
office will expire on April 1. The appointed directors' terms
begin on April 1 of that year.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.052. QUALIFICATIONS FOR OFFICE. (a) Directors must
be appointed from areas in Coryell County as follows:
(1) one each from the Oglesby-Mound area and Levita area;
(2) two each from the Pancake area, Jonesboro area, and
Turnersville area; and
(3) three from the Coryell City area.
(b) To be eligible to succeed a director whose term of office is
about to expire, a person must be appointed from the same
geographical area as the geographical area that the director
represents.
(c) Each director is eligible for reappointment.
(d) To be eligible to be appointed or to serve as a director, a
person must be a resident, qualified voter of the geographical
area from which the person is appointed.
(e) A director may not hold any other public office.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.053. VACANCIES. Any vacancy occurring on the board
shall be filled for the unexpired term by appointment in the
manner in which the vacating director was appointed.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.054. REMOVAL FROM OFFICE. After reasonable notice and
a public hearing, 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 notice and
hearing are expressly waived in writing.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.055. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) The
district shall act by resolutions adopted by the board.
(b) All directors are entitled to vote.
(c) The affirmative vote of a majority of the directors present
is necessary to adopt a resolution.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.056. OFFICERS AND ASSISTANTS. (a) The board shall
elect a president, vice president, secretary, and treasurer at
the first meeting of the newly constituted board each year and at
any time necessary to fill a vacancy.
(b) The board shall elect the president and vice president from
among the directors.
(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. 6906.057. DUTIES OF OFFICERS AND ASSISTANTS. (a) The
board president shall preside at board meetings and perform other
duties prescribed by the board.
(b) The board treasurer shall perform duties and functions
prescribed by the board.
(c) 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.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.058. 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 two
directors.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.059. 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. 6906.101. GENERAL POWERS. The district has all powers
necessary or appropriate to achieve the purposes of this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.102. GENERAL POWERS REGARDING WATER. The district has
all rights, powers, and privileges necessary or useful to enable
it to acquire, provide, supply, deliver, and sell potable water
for any beneficial purpose in its boundaries and vicinity and in
Coryell and McLennan Counties.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.103. GENERAL POWERS REGARDING WASTE. (a) The
district has all rights, powers, and privileges necessary or
useful to enable it to collect, transport, dispose of, and
control domestic, industrial, or communal wastes, whether in
fluid, solid, or composite state, inside and outside its
boundaries.
(b) The district may exercise any power granted by Chapter 30,
Water Code, to a 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. 6906.104. DISTRICT BYLAWS AND RULES. The district may
adopt and enforce:
(1) bylaws and rules for the conduct of its affairs; and
(2) rules that a municipal utility district may adopt and
enforce under Sections 54.205 et seq., Water Code.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.105. PROPERTY ACQUISITION, USE, AND DISPOSITION. (a)
The district may acquire, own, rent, lease, accept, hold, or
dispose of property, or an interest in property, including a
right or easement, by purchase, exchange, gift, assignment,
condemnation, sale, lease, or otherwise, in performing district
duties or exercising district powers under this chapter.
(b) The district may hold, manage, operate, or improve property.
(c) The district may lease or rent any land, building,
structure, or facility from or to any person to achieve the
purposes of this chapter.
(d) The district may 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, regardless of the manner in which acquired,
and conduct a transaction authorized by this subsection by public
or private sale, with or without public bidding, notwithstanding
any other law.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.106. REQUESTS FOR AND ACCEPTANCE OF AID. The district
may request and accept an appropriation, grant, allocation,
subsidy, guarantee, aid, service, material, or gift from any
public or private source, including the federal government, the
state, a public agency, or a political subdivision.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.107. DISTRICT 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. 6906.108. PERSONNEL. The district may appoint and
determine the duties, tenure, qualifications, and compensation of
district officers and employees, as well as any agent,
professional advisor, or counselor, including any financial
consultant, accountant, attorney, architect, engineer, appraiser,
or financing expert, considered necessary or advisable by the
board.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.109. PERMITS. (a) The district may obtain through
appropriate proceedings 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. 6906.110. GENERAL CONTRACT POWERS. (a) The district may
enter into and enforce a contract or agreement necessary or
convenient to the exercise of the powers, rights, privileges, and
functions conferred on the district by this chapter or the
general law, including a contract or agreement with any person as
the board considers necessary or proper for, or in connection
with, any power or function of the district for:
(1) the purchase or other acquisition, storage, transportation,
distribution, delivery, or sale of water;
(2) the collection, transportation, processing, or disposal of
waste; or
(3) the construction, acquisition, ownership, financing,
operation, maintenance, sale, leasing to or from, or other use or
disposition of any facilities authorized to be developed,
acquired, or constructed under this chapter or the general law.
(b) The authority to enter into or enforce the contract or
agreement includes the authority to enter into or enforce a
contract or agreement regarding:
(1) any improvements, structures, facilities, equipment, and
other property of any kind in connection with the subject of the
contract or agreement;
(2) any related land, leaseholds, and easements; and
(3) any interests in the property.
(c) The contract or agreement:
(1) may not have a term of more than 40 years; and
(2) may contain provisions the board determines to be in the
best interest of the district.
(d) The district may pledge all or part of its revenue to the
payment of its obligations under the contract or agreement to the
same extent and on the same conditions as it may pledge revenue
to secure district bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.111. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL
SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a) A public agency or
political subdivision of this state may enter into a contract or
agreement with the district, on terms agreed to by the parties,
for:
(1) the purchase or sale of water;
(2) waste collection, processing, or disposal; or
(3) any purpose relating to the district's powers or functions.
(b) 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. 6906.112. ACQUISITION OF LAND; STORAGE CAPACITY. (a) The
district may acquire land, or an interest in land, inside or
outside the district for any work, plant, or other facility
necessary or useful to divert, impound, store, drill for, pump,
treat, or transport water for municipal, domestic, industrial,
mining, oil flooding, or any other useful purpose.
(b) 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 the United States or any
other person.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.113. 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;
(3) the material, equipment, or supplies to be purchased; and
(4) 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. 6906.114. CONVEYANCE OF LAND TO DISTRICT. A public agency
or political subdivision of this state may lease, sell, or
otherwise convey to the district any of its land, improvements,
property, plants, lines, or other facilities related to the
supply of water or the collection, processing, or disposal of
waste for any 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. 6906.115. DISPOSAL OF 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 under terms considered by the board
to be consistent with district purposes.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.116. EMINENT DOMAIN. (a) To carry out a power
provided 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, inside
or outside the district.
(b) The district must exercise the power of eminent domain in
the manner provided by Chapter 21, Property Code, except that the
district is not required to:
(1) give bond for appeal or bond for costs in a condemnation or
other suit to which it is a party; or
(2) deposit double the amount of an award in a suit.
(c) The district is a municipal corporation for the purposes of
Chapter 21, Property Code.
(d) The board shall determine the amount and the type of
interest in land, other property, or easements to be acquired.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.117. COST OF RELOCATING OR ALTERING PROPERTY. (a) In
this section, the term "sole expense" means the actual cost of
the relocation, 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 its eminent domain, police, or
other power requires relocating, raising, lowering, rerouting,
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. 6906.118. RIGHTS-OF-WAY; EASEMENTS. The district has all
necessary or useful right-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 to its previous condition as nearly as
possible 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. 6906.119. SEAL. The district may adopt an official seal.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS
Sec. 6906.151. DISTRICT MONEY. The district may acquire, hold,
use, and dispose of its receipts and money from any source.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.152. AUTHORITY TO BORROW MONEY AND ISSUE BONDS. The
district, in the manner and to the extent permitted by this
chapter, may:
(1) borrow money for any of its corporate purposes;
(2) enter into agreements in connection with the borrowing;
(3) issue its bonds for money borrowed;
(4) provide for and secure the payment of its bonds; and
(5) provide for the rights of the holders of its bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.153. DEPOSITORY. (a) The board shall designate one or
more banks or savings and loan associations inside or outside the
district to serve as the depository for the district's money.
(b) All of 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 in this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.154. INVESTMENT OF DISTRICT MONEY. The board may
invest district money in obligations and make time deposits of
district money in a manner determined by the board or in the
manner permitted or required in 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. 6906.155. 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. BONDS
Sec. 6906.201. AUTHORITY TO ISSUE BONDS. (a) The district may
issue bonds payable from and secured by district revenue to carry
out any purpose or power conferred on the district by this
chapter. The bonds must be authorized by a board resolution.
(b) The bonds must be issued in the manner and under the terms
of 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. 6906.202. FORM OF BONDS. District bonds must be:
(1) issued in the district's name;
(2) signed by the president or vice president; and
(3) attested by the secretary.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.203. 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. 6906.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. (a)
District bonds may be secured by a pledge of all or part of the
district's revenue, or by all or part of the payments or rentals
under one or more contracts or leases specified by board
resolution or a trust indenture securing the bonds.
(b) A resolution authorizing the issuance of bonds secured by a
pledge of revenue of all or part of the district's facilities may
provide that the district shall first pay the expenses of
operating and maintaining all or part of the facilities as the
board considers appropriate before paying the principal of and
interest on the bonds.
(c) A resolution authorizing the issuance of bonds secured by
revenue, contract payments, or lease rentals may reserve to the
district the right, under conditions specified by the resolution,
to issue additional bonds that will be on a parity with, superior
to, or subordinate to the bonds then being issued.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.205. ADDITIONAL SECURITY. (a) District bonds may be
additionally secured, at the discretion of the board, by a deed
of trust or mortgage lien on all or part of the district's
physical property, facilities, easements, franchises, 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 the property, facilities, and
rights purchased; and
(2) is entitled to maintain and operate the property,
facilities, and rights.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.206. TRUST INDENTURE. (a) District bonds, including
refunding bonds, 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 a 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 the trust indenture; 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. 6906.207. CHARGES FOR DISTRICT SERVICES. If district bonds
payable wholly from revenue are issued, the board shall set and
revise the rates, fees, and charges assessed for water sold and
waste collection and treatment services provided by the district.
The rates, fees, and charges must be sufficient to:
(1) pay the expense of operating and maintaining the district
facilities that generate the revenue from which the bonds will be
paid;
(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.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.208. STATE PLEDGE REGARDING RIGHTS AND REMEDIES OF
BONDHOLDERS. Without depriving this state of its power to
regulate and control the rates, fees, and charges assessed for
water sold and waste collection and treatment services provided
by the district, the state pledges to and agrees with the holders
of district bonds that the state will not exercise its power to
regulate and control the rates, fees, and charges in any way that
would impair the rights or remedies of the holders of the bonds.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.209. USE OF BOND PROCEEDS. (a) The district may set
aside an amount of proceeds from the sale of district bonds for:
(1) the payment of interest expected to accrue during
construction not to exceed three years;
(2) a debt service reserve fund; and
(3) other funds as may be provided in 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. 6906.210. APPOINTMENT OF RECEIVER. (a) On default or
threatened default in the payment of the principal of or interest
on district bonds 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,
employ and discharge district agents and employees, take charge
of money on hand, and manage the proprietary affairs of the
district without consent or hindrance by the board.
(c) The receiver may be authorized to sell or contract for the
sale of water or the collection, processing, or disposal of waste
or to renew 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. 6906.211. REFUNDING BONDS. (a) The district may issue
refunding bonds to refund outstanding district bonds and interest
on those bonds.
(b) 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.
(c) The provisions of this subchapter regarding the issuance of
other bonds, their security, and the remedies of the holders
apply to refunding bonds.
(d) The comptroller shall register the refunding bonds on the
surrender and cancellation of the bonds to be refunded.
(e) 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 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.
(f) 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. 6906.212. OTHER REMEDIES AND COVENANTS. The resolution
authorizing the issuance of any district bonds, including
refunding bonds, or the trust indenture securing the bonds, may
provide other remedies and covenants the board considers
necessary to issue the bonds on the most favorable terms.
Added by Acts 2007, 80th Leg., R.S., Ch.
920, Sec. 1.06, eff. April 1, 2009.
Sec. 6906.213. LIMITATION ON RIGHTS OF BONDHOLDERS. 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. 6906.214. BONDS EXEMPT FROM TAXATION. A district bond, the
transfer of the bond, and the 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.