Texas Transportation Code

§ 451.357 — SECURITY PLEDGED

TN § 451.357Title 6. ROADWAYS · Part K. MASS TRANSPORTATION · Ch. 451. METROPOLITAN RAPID TRANSIT AUTHORITIES · Art. H. BONDS

Statute text

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(a)To secure the payment of an authority's bonds, the authority may:

(1)pledge all or part of revenue realized from any tax that the authority may impose;

(2)pledge all or part of the revenue of the transit authority system; and

(3)mortgage all or part of the transit authority system, including any part of the system subsequently acquired.

(b)Under Subsection (a)(3) an authority may, subject to the terms of the bond indenture or the resolution authorizing the issuance of the bonds, encumber a separate item of the transit authority system and acquire, use, hold, or contract for the property by lease, chattel mortgage, or other conditional sale including an equipment trust transaction.

(c)An authority may not issue bonds secured by ad valorem tax revenue.

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Legislative history

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.