Texas Special District Local Laws Code 8509.0308 – Additional Security
(a) District bonds, including refunding bonds, that are not payable wholly from ad valorem taxes may be additionally secured, at the board’s discretion, by a deed of trust or mortgage lien on the district’s physical property and all franchises, easements, water rights and appropriation permits, leases, and contracts and all rights appurtenant to the property, vesting in the trustee power to:
(1) sell the property for the payment of the debt;
(2) operate the property; and
(3) take other action to further secure the bonds.
(b) A purchaser under a sale under the deed of trust lien, if one is given:
(1) is the absolute owner of the property, facilities, and rights purchased; and
(2) is entitled to maintain and operate the property, facilities, and rights.
Terms Used In Texas Special District Local Laws Code 8509.0308
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: means real and personal property. See Texas Government Code 311.005
- Trustee: A person or institution holding and administering property in trust.