Sec. 5004.202. AUTHORITY TO ISSUE BONDS

(a) To provide money for any of the purposes provided by this chapter or other laws relating to navigation districts, the board may:

(1) issue district bonds that are secured solely by a pledge of and payable from the net revenue derived from the operation of all or a designated part of the improvements and facilities of the district then in existence or to be constructed or acquired; or

(2) issue district bonds secured by a pledge of all or part of the proceeds of one or more contracts previously or subsequently made or other revenue or income specified by board resolution.

(b) As long as bonds issued under Subsection (a)(1) are outstanding, the board shall charge and collect fees, tolls, and other charges sufficient to:

(1) pay all maintenance and operation expenses of the improvements and facilities the income of which is pledged;

(2) pay the interest on the bonds as it accrues;

(3) pay the principal of the bonds as they mature; and

(4) make any other payments prescribed in the bond order or resolution.

(c) All district bonds must be authorized by board resolution or order.

(d) Bonds payable solely from net revenue may be issued without an election.

Added by Acts 2007, 80th Leg., R.S., Ch. 920 , Sec. 1.04, eff. April 1, 2009.