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Texas Statutes (Last Updated: January 4, 2014) |
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LOCAL GOVERNMENT CODE |
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Title 13. WATER AND UTILITIES |
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Subtitle B. COUNTY WATER |
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Chapter 563. WATER, WASTEWATER, OR SOLID WASTE SYSTEMS IN COUNTIES WITH POPULATION OF 10,000 OR LESS |
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Subchapter C. BONDS FOR WATER OR WASTEWATER SYSTEM |
Sec. 563.102. ADDITIONAL BOND SECURITY
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(a) Bonds issued under this chapter may be secured additionally by an encumbrance on part or all of the physical property of the wastewater collection and treatment system or water supply and distribution system 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 commissioners court 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 money from the wastewater collection and treatment system or water supply and distribution system.
(c) A purchaser under a sale under the encumbrance on the physical property:
(1) is the absolute owner of the property and the rights purchased; and
(2) may maintain and operate the property.