Texas Local Government Code 281.071 – Issuance of Bonds
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(a) An authority may issue revenue bonds for any purpose set forth in Subchapters A through E when the issuance is authorized by a resolution adopted by the board. The bonds must be secured by a pledge of, and be payable from, all or a designated part of the authority’s revenues from its facilities or any other source, including contract and lease proceeds.
(b) The bonds may mature serially or in any other manner. The bonds may not mature later than 40 years after the date of the bonds.
Terms Used In Texas Local Government Code 281.071
- Contract: A legal written agreement that becomes binding when signed.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(c) The bonds shall bear interest at a rate that does not exceed the maximum interest rate authorized by Chapter 1204, Government Code.
(d) The bonds and the appurtenant interest coupons, if any, are investment securities under Chapter 8, Business & Commerce Code.
(e) As provided by the board, the bonds and interest coupons:
(1) may be issued registrable as to principal or as to both principal and interest; and
(2) may be made redeemable before maturity, at the option of the board, or may contain a mandatory redemption provision.
(f) In the resolution authorizing the issuance of the bonds, the board shall designate the form and denominations of the bonds; the manner, terms, conditions, and details of issuance; and the manner of signing and executing the bonds.