(a) To secure the payment of an authority’s bonds, the authority may:
(1) pledge any part of the revenue of the public transportation system;
(2) mortgage any part of the public transportation system, including any part of the system subsequently acquired;
(3) pledge all or part of funds the federal government has committed to the authority as grants in aid; and
(4) provide that a pledge of revenue described by Subdivision (1) is a first or subordinate lien or charge against that revenue.
(b) Under Subsection (a)(2), 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 public transportation system and acquire, use, hold, or contract for the property by lease, chattel mortgage, or other conditional sale including an equipment trust transaction.

Terms Used In Texas Transportation Code 463.207

  • Contract: A legal written agreement that becomes binding when signed.
  • 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
  • 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

(c) An authority may not issue bonds secured by ad valorem tax revenue.
(d) An authority is not prohibited by this subchapter from encumbering one or more public transportation systems to purchase, construct, extend, or repair one or more other public transportation systems of the authority.
(e) The authority may pledge funds described by Subsection (a)(3):
(1) as the sole security for the bonds; or
(2) in addition to any other security described by this section.

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