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Texas Statutes (Last Updated: January 4, 2014) |
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SPECIAL DISTRICT LOCAL LAWS CODE |
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Title 6. WATER AND WASTEWATER |
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Subtitle F. MUNICIPAL UTILITY DISTRICTS |
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Chapter 8104. BAYTOWN AREA WATER AUTHORITY |
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Subchapter G. BONDS AND NOTES |
Sec. 8104.306. SECURITY FOR BONDS OR NOTES
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(a) Bonds or notes of the authority and the interest on the bonds or notes may be secured by and payable only from the sources authorized by this chapter.
(b) The bonds or notes may be secured by and payable from a pledge of all or part of:
(1) the authority's revenues, receipts, or assets; or
(2) the revenues of one or more past or future leases or other contracts.
(c) A pledge made under this section must be specified:
(1) by the resolution authorizing the bonds or notes; or
(2) by the trust indenture or other instrument securing the bonds or notes.
(d) The lien of the pledge or security instrument is binding against all parties having claims of any kind against the authority, including tort or contract claims, regardless of whether the parties have notice of the lien.
(e) A pledge made under this section may reserve to the authority the right, under conditions the pledge specifies, to issue additional bonds or notes that will be on a parity with or subordinate to the bonds or notes then being issued.