Texas Transportation Code 367.061 – Mortgage or Pledge of Revenue to Secure Bonds
Terms Used In Texas Transportation Code 367.061
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
To accomplish any purpose of this subchapter, the governing body of a municipality may with respect to bonds issued under this subchapter:
(1) mortgage or pledge all or part of:
(A) any interest in a toll bridge of the municipality, together with any associated right or property described by Section 367.052, or any other property acquired or to be acquired with the bonds or the proceeds of the sale of the bonds; or
(B) the net or gross revenue of any property described by Paragraph (A);
(2) secure the payment of the principal of and interest on the bonds and of the sinking fund and reserve fund agreed to be established in connection with the bonds; and
(3) enter into any covenant or agreement with the purchasers of the bonds or any person on behalf of those purchasers with respect to the bonds to:
(A) secure the payments described by Subdivision (2); and
(B) provide rights and remedies to the purchasers or holders of the bonds or any person on their behalf.