CHAPTER 1509. OBLIGATIONS FOR OTHER MUNICIPAL PURPOSES

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GOVERNMENT CODE

TITLE 9. PUBLIC SECURITIES

SUBTITLE J. SPECIFIC AUTHORITY FOR MUNICIPALITIES TO ISSUE

SECURITIES

CHAPTER 1509. OBLIGATIONS FOR OTHER MUNICIPAL PURPOSES

SUBCHAPTER A. BONDS FOR FACILITIES TO BE SOLD OR LEASED TO PUBLIC

OR PRIVATE ENTITIES

Sec. 1509.001. AUTHORITY TO ACQUIRE PROPERTY FOR LEASE TO PUBLIC

OR PRIVATE ENTITY. (a) A municipality may acquire land and may

construct or acquire a building or other facility for the purpose

of leasing the land, building, or other facility to:

(1) a political subdivision or state agency for public use;

(2) an individual, private corporation, or other private entity

for use in manufacturing or another commercial activity; or

(3) if the municipality is a defense community as defined by

Section 397.001, Local Government Code, the federal government to

enhance the military value of a military facility located in or

near the defense community.

(b) A municipality may not acquire land under Subsection (a) by

eminent domain.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

1302, Sec. 1, eff. June 18, 2005.

Sec. 1509.002. AUTHORITY TO ACQUIRE PROPERTY FOR SALE OR LEASE

TO INSTITUTION OF HIGHER EDUCATION. (a) In this section,

"institution of higher education" has the meaning assigned by

Section 61.003, Education Code.

(b) This section applies only to a municipality that:

(1) has a population of more than 15,000 but less than 16,000;

and

(2) is located in two counties with populations of 325,000 or

more but less than 3.5 million.

a building or other facility for the purpose of selling or

leasing the land, building, or other facility to an institution

of higher education that will provide a significant number of

vocational and vocational-technical education courses in the

facility for public use.

(d) The municipality may sell or lease the property:

(1) without public notice or bidding; and

(2) on terms the governing body of the municipality finds

acceptable.

(e) A municipality may not acquire land under this section by

eminent domain.

(f) A sale under Subsection (c) may be by an installment sale

agreement or otherwise.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 32, eff.

Sept. 1, 2001.

Sec. 1509.003. AUTHORITY TO ISSUE BONDS. To develop and

diversify the economy of this state and eliminate unemployment or

underemployment in this state under the authority granted by

Section 52-a, Article III, Texas Constitution, a municipality may

issue and sell bonds to finance an action taken under Section

1509.001 or 1509.002.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.004. BOND PAYMENTS FROM REVENUE OR TAXES. (a) A

municipality may provide for payment of the principal of and

interest on bonds issued under this subchapter by:

(1) pledging all or part of the revenue from the sale or lease

of all or part of the land, building, or other facility financed

by the bonds, after deduction of reasonable operation and

maintenance costs;

(2) imposing an annual ad valorem tax; or

(3) combining those sources.

(b) A municipality with a population of 80,000 or more may also

provide for the payment of the principal of or interest on the

bonds by pledging all or any part of other municipal revenue that

is not prohibited from being used for that payment.

taken action under Section 1509.001(a)(3) may also provide for

the payment of the principal of or interest on the bonds issued

to finance the action taken by pledging all or any part of other

municipal revenue that the municipality is not prohibited from

using for that payment.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Amended by:

Acts 2005, 79th Leg., Ch.

1302, Sec. 2, eff. June 18, 2005.

Sec. 1509.005. ELECTION REQUIRED TO SECURE BONDS WITH TAX

REVENUE. Bonds to be issued under this subchapter that are

payable in whole or in part from ad valorem taxes must be

approved, before issuance, by a vote of a majority of the

registered voters of the municipality voting on the issue.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.006. CONTENTS OF ORDINANCE, ORDER, OR RESOLUTION

AUTHORIZING BONDS. (a) In the ordinance, order, or resolution

authorizing the issuance of bonds under this subchapter, the

governing body of a municipality may provide for the deposit and

accounting of money and the establishment and maintenance of an

interest and sinking fund, a reserve fund, or another fund.

(b) The ordinance, order, or resolution may make additional

covenants relating to the bonds, the pledged revenue, or the

operation and maintenance of any land, building, or other

facility the revenue of which is pledged for bond payments.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.007. ADOPTION AND EXECUTION OF DOCUMENTS. The

governing body of a municipality may adopt and have executed any

proceeding or instrument necessary and convenient in:

(1) the issuance of bonds under this subchapter; or

(2) the acquisition and sale or lease of any land, building, or

other facility under Section 1509.001 or 1509.002.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.008. MATURITY. A bond issued under this subchapter

must mature not later than 40 years after its date.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.009. IMPOSITION OF TAX. (a) The governing body of a

municipality may annually impose ad valorem taxes to pay the

principal of and interest on bonds issued under this subchapter

that are payable in whole or in part from ad valorem taxes only

if the taxes are approved at an election held under Section

1509.005.

(b) A municipality may not impose ad valorem taxes to pay the

principal of or interest on bonds issued under this subchapter

payable wholly from revenue from one or more leases or other

contracts made under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.010. GRANTS FOR PRISONS OR LAW ENFORCEMENT FACILITIES

NOT PROHIBITED. This subchapter does not prohibit a municipality

from making a grant of money or property to an agency of this

state to assist the agency in acquiring or developing a site for

a prison or other law enforcement detention facility, regardless

of whether the site is located inside or outside the municipal

boundaries.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER C. BONDS FOR FARMERS' MARKETS IN MUNICIPALITIES WITH

POPULATION OF MORE THAN 650,000

Sec. 1509.101. APPLICABILITY OF SUBCHAPTER. This subchapter

applies only to a municipality with a population of more than 1.1

million.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 33, eff.

Sept. 1, 2001.

Sec. 1509.102. DEFINITION. In this subchapter, "farmers'

market" means a public marketplace where a person is permitted to

sell agricultural and other products.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.103. AUTHORITY FOR FARMERS' MARKET. A municipality

may:

(1) acquire, lease as lessor or lessee, construct, improve,

enlarge, or operate a farmers' market; and

(2) contract with any public or private entity to perform any

function authorized by this section.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.104. AUTHORITY TO ISSUE REVENUE BONDS. The governing

body of a municipality may issue revenue bonds for a purpose

authorized by Section 1509.103.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.105. PLEDGE OF REVENUE. A municipality may pledge all

or part of the revenue, income, or receipts from the farmers'

market to the payment of the bonds, including principal,

interest, and any other amounts required or permitted in

connection with the bonds.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.106. ADDITIONAL SECURITY. (a) Bonds issued under

this subchapter may be additionally secured by:

(1) an encumbrance on any real property relating to a farmers'

market owned or to be acquired by the municipality;

(2) an encumbrance on any personal property appurtenant to real

property described by Subdivision (1); or

(3) a pledge of any portion of a grant, donation, or revenue, or

income received or to be received from the United States or any

other public or private source.

(b) The governing body of the municipality may authorize the

execution of a trust indenture, mortgage, deed of trust, or other

instrument as evidence of the encumbrance.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.107. MATURITY. A bond issued under this subchapter

must mature not later than 40 years after its date.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.108. ADDITIONAL BONDS. The ordinance authorizing the

issuance of bonds under this subchapter may provide for the

subsequent issuance of additional parity bonds or subordinate

lien bonds under terms specified in the ordinance.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.109. SALE OF BONDS. A municipality may sell bonds

issued under this subchapter in the manner and under the terms

provided by the ordinance authorizing the issuance of the bonds.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.110. REVIEW AND APPROVAL OF CONTRACTS RELATING TO

BONDS. (a) If bonds issued under this subchapter state that the

bonds are secured by a pledge of revenue or rents from a

contract, including a lease contract, a copy of the contract and

the proceedings related to it must be submitted to the attorney

general.

(b) If the attorney general finds that the bonds have been

authorized and the contract has been made in accordance with law,

the attorney general shall approve the contract.

Chapter 1202 and the contract is approved under Subsection (b),

the contract is incontestable in a court or other forum for any

reason and is a valid and binding obligation for all purposes in

accordance with its terms.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.111. CHARGES. (a) The governing body of a

municipality may impose and collect charges for the use or

availability of the farmers' market.

(b) The municipality shall impose and collect pledged charges in

an amount that will be at least sufficient, with any other

pledged resources, to provide for the payment of:

(1) the principal of, interest on, and any other amounts

required in connection with the bonds; and

(2) to the extent required by the ordinance authorizing the

issuance of the bonds:

(A) expenses incurred in connection with the bonds; and

(B) operation, maintenance, and other expenses incurred in

connection with the farmers' market.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.112. REFUNDING BONDS. (a) A municipality may refund

or otherwise refinance bonds issued under this subchapter by

issuing refunding bonds under any terms provided by an ordinance

of the governing body of the municipality.

(b) All appropriate provisions of this subchapter apply to the

refunding bonds. The refunding bonds shall be issued in the

manner provided by this subchapter for other bonds.

sufficient to pay the principal of and interest and any

redemption premium on the bonds to be refunded, at maturity or on

any redemption date.

(d) The refunding bonds may be issued to be exchanged for the

bonds to be refunded by them. In that case, the comptroller shall

the bonds to be refunded as provided by the ordinance authorizing

the refunding bonds. The exchange may be made in one delivery or

in installment deliveries.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.113. PUBLIC PURPOSE. The acquisition, construction,

improvement, enlargement, equipment, operation, or maintenance of

property or a facility for providing a farmers' market is a

public purpose and a proper municipal function.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.114. CONFLICT OR INCONSISTENCY WITH OTHER LAW. When

bonds are issued under this subchapter, to the extent of any

conflict or inconsistency between this subchapter and another

law, this subchapter controls.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER D. BONDS FOR GARBAGE RECLAMATION PROJECTS

Sec. 1509.151. DEFINITION. In this chapter, "garbage

reclamation project" means an undertaking by which solid waste

products are converted into a form usable by persons for any

purpose, including the production of energy.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.152. AUTHORITY FOR GARBAGE RECLAMATION PROJECTS. A

municipality may own and operate a garbage reclamation project.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.153. AUTHORITY TO ISSUE BONDS. If necessary to

exercise the authority granted by Section 1509.152, the governing

body of a municipality may issue and sell bonds to finance:

(1) the purchase, lease, or acquisition by another method of

land, a facility, equipment, or supplies;

(2) the construction or improvement of a facility; and

(3) the installation of equipment.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.154. BOND PAYMENTS FROM REVENUE OR TAXES. The

governing body of the municipality may provide for payment of the

principal of and interest on bonds issued under this subchapter

by:

(1) pledging all or part of the revenue from the ownership or

operation of a garbage reclamation project;

(2) imposing an ad valorem tax; or

(3) combining those sources.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.155. ADDITIONAL SECURITY. (a) Bonds issued under

this subchapter may be secured additionally by an encumbrance on

part or all of the physical property of the garbage reclamation

project and each right relating to that property, vesting in the

trustee the power to:

(1) operate the property;

(2) sell the property to pay the debt; or

(3) take any other action to secure the bonds.

(b) Regardless of an encumbrance on the property, a trust

indenture on the property may:

(1) contain any provision that the governing body of the

municipality prescribes for the security of the bonds and the

preservation of the trust estate;

(2) provide for amendment or modification of the trust

indenture; and

(3) provide for investment of revenue from the garbage

reclamation project.

property:

(1) is the absolute owner of the property and the rights

purchased; and

(2) may maintain and operate the property.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.156. ELECTION. (a) The governing body of the

municipality may not issue bonds under this subchapter unless the

issuance is authorized by a majority of the qualified voters of

the municipality voting at an election held for that purpose.

(b) The governing body shall hold the election, to the extent

practicable, in compliance with Chapter 1251.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.157. BALLOT PROPOSITION. (a) At an election to

authorize bonds payable wholly from revenue from the garbage

reclamation project, the ballots shall be printed to provide for

voting for or against the proposition: "The issuance of bonds for

a garbage reclamation project in the amount of $__________ and

the pledge of net revenue from the project for the payment of the

bonds."

(b) At an election to authorize bonds payable wholly from ad

valorem taxes, the ballots shall be printed to provide for voting

for or against the proposition: "The issuance of bonds for a

garbage reclamation project in the amount of $__________ and the

imposition of taxes for payment of the bonds."

from the garbage reclamation project and ad valorem taxes, the

ballots shall be printed to provide for voting for or against the

proposition: "The issuance of bonds for a garbage reclamation

project in the amount of $__________ and the pledge of net

revenue and the imposition of ad valorem taxes adequate to

provide for the payment of the bonds."

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.158. CONTENTS OF ORDER OR RESOLUTION AUTHORIZING

BONDS. (a) An order or resolution of the governing body of the

municipality authorizing the issuance of bonds under this

subchapter may provide for the flow of funds and the

establishment and maintenance of an interest and sinking fund, a

reserve fund, or another fund.

(b) The order or resolution may:

(1) prohibit the further issuance of bonds or other obligations

payable from the pledged revenue; or

(2) reserve the right to issue additional bonds to be secured by

a pledge of and payable from the revenue that are on a parity

with, or subordinate to, the lien and pledge on the revenue being

used to support the bonds being issued.

covenant, including a covenant with respect to the bonds, the

pledged revenue, or the operation and maintenance of the garbage

reclamation project the revenue of which is pledged.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.159. ADOPTION AND EXECUTION OF DOCUMENTS. The

governing body of the municipality may adopt and have executed

any other proceeding or instrument necessary and convenient in

the issuance of bonds under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.160. MATURITY. A bond issued under this subchapter

must mature not later than 40 years after its date.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.161. IMPOSITION OF TAX. (a) The governing body of

the municipality may annually impose ad valorem taxes to pay

bonds issued under this subchapter that are payable in whole or

in part from ad valorem taxes.

(b) The governing body may not impose ad valorem taxes to pay

the principal of or interest on bonds issued under this

subchapter payable wholly from revenue from a garbage reclamation

project.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.162. REFUNDING BONDS. (a) A municipality may issue

refunding bonds to refund all or any part of its outstanding

bonds issued under this subchapter, including matured but unpaid

interest coupons. The comptroller shall register refunding bonds

on the surrender and cancellation of the bonds being refunded.

The refunding may take place in one delivery or in installment

deliveries.

(b) The refunding bonds may be payable from the same sources as

the bonds to be refunded or from other additional sources.

the issuance of the refunding bonds, provide for the sale of the

refunding bonds and the deposit of the proceeds in the place at

which the bonds to be refunded are payable. In that case, the

refunding bonds may be issued before the cancellation of the

bonds to be refunded.

(d) If refunding bonds are issued before cancellation of the

bonds to be refunded, the municipality shall deposit an amount

sufficient to pay the principal of and interest on the bonds to

be refunded to their maturity dates, or to their option dates if

the bonds have been called for payment before maturity according

to their terms, in each place at which the bonds to be refunded

are payable. The comptroller shall register the refunding bonds

without the surrender and cancellation of bonds to be refunded.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.163. EXEMPTION FROM TAXATION. A bond issued under

this subchapter, any transaction related to the bond, and profits

made in the sale of the bond are exempt from taxation by this

state or by a municipality or other political subdivision of this

state.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER E. BONDS FOR ACQUISITION OF PROPERTY BY MUNICIPALITY

OPERATING TOLL BRIDGE OVER RIO GRANDE

Sec. 1509.201. APPLICABILITY OF SUBCHAPTER. This subchapter

applies only to a municipality that owns and operates a portion

of a toll bridge over the Rio Grande.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.202. AUTHORITY FOR PROPERTY, FACILITY, OR ACTIVITY. A

municipality may acquire, construct, improve, enlarge, equip,

operate, or maintain property, a facility, or an activity for a

public purpose.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.203. AUTHORITY TO ISSUE REVENUE BONDS. To provide

money to acquire, construct, improve, enlarge, or equip property

or a facility for a public purpose, the governing body of a

municipality may issue revenue bonds that are payable from and

secured by a lien on and pledge of all or any part of the

revenue, income, or receipts the municipality receives from its

ownership and operation of:

(1) a portion of a toll bridge over the Rio Grande; or

(2) property, a facility, or an activity.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.204. PLEDGE OF REVENUE. A municipality may pledge to

the payment of bonds issued under this subchapter, including the

principal of, interest on, or another amount required or

permitted to be paid in connection with the bonds, all or any

part of its revenue, income, or receipts from:

(1) a charge authorized by Section 1509.210; or

(2) another resource.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.205. ADDITIONAL SECURITY. (a) Bonds issued under

this subchapter may be additionally secured by:

(1) an encumbrance on any real property owned by the

municipality;

(2) an encumbrance on any personal property appurtenant to that

real property; or

(3) a pledge of any portion of a grant, donation, revenue, or

income received or to be received from the United States or any

other public or private source.

(b) The governing body of the municipality may authorize the

execution of a trust indenture, mortgage, deed of trust, or other

instrument as evidence of the encumbrance.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.206. BONDS NOT PAYABLE FROM TAXES. A bond issued

under this subchapter:

(1) is payable only from the revenue, income, receipts, or

another resource of the municipality as provided by this

subchapter; and

(2) is not a tax obligation of the municipality.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.207. MATURITY. A bond issued under this subchapter

must mature not later than 50 years after its date.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.208. ADDITIONAL BONDS. The ordinance authorizing the

issuance of bonds under this subchapter may provide for the

subsequent issuance of additional parity or subordinate lien

bonds under terms specified in the ordinance.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.209. SALE OF BONDS. A municipality may sell bonds

issued under this subchapter in the manner and on the terms

provided by the bond authorization.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.210. CHARGES. (a) The governing body of the

municipality may impose and collect a charge for the use or

availability of:

(1) municipal property, including a toll bridge or other

facility; or

(2) a municipal activity or operation.

(b) The governing body shall impose and collect pledged charges

in an amount that will be at least sufficient, with any other

pledged resource, to provide for the payment of:

(1) the principal of, interest on, and any other amount required

in connection with the bonds; and

(2) to the extent required by the ordinance authorizing the

issuance of the bonds:

(A) expenses incurred in connection with the bonds; and

(B) operation, maintenance, and other expenses incurred in

connection with the property, toll bridge, or other facility.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.211. LEASE OR RENTAL OF PROPERTY OR FACILITY TO UNITED

STATES. The municipality may lease or rent to the United States

any property or facility acquired, constructed, improved,

enlarged, or equipped in whole or in part with proceeds from the

sale of bonds issued under this subchapter.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.212. REFUNDING BONDS. (a) A municipality may refund

or otherwise refinance bonds issued under this subchapter by

issuing refunding bonds under any terms provided by an ordinance

of the governing body of the municipality.

(b) All appropriate provisions of this subchapter apply to the

refunding bonds. The refunding bonds shall be issued in the

manner provided by this subchapter for other bonds.

sufficient to pay the principal of and interest and any

redemption premium on the bonds to be refunded, at maturity or on

any redemption date.

(d) The refunding bonds may be issued to be exchanged for the

bonds to be refunded by them. In that case, the comptroller shall

the bonds to be refunded as provided by the ordinance authorizing

the refunding bonds. The exchange may be made in one delivery or

in installment deliveries.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.213. PUBLIC PURPOSE. The acquisition, construction,

improvement, enlargement, or equipment by a municipality of

property or a facility for lease or rental to the United States

for use in performing a federal governmental function in the

municipality or at or near and relating to a toll bridge of the

municipality is a public purpose and a proper municipal function,

regardless of whether the toll bridge or the federal facility

relating to the bridge is located inside or outside the municipal

boundaries.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.214. CONFLICT OR INCONSISTENCY WITH OTHER LAW. When

bonds are being issued under this subchapter, to the extent of a

conflict or inconsistency between this subchapter and another

law, this subchapter controls.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

SUBCHAPTER Z. MISCELLANEOUS PROVISIONS

Sec. 1509.901. PLEDGE OF REVENUE FROM TOLL BRIDGE CONTRACT. A

municipality that receives revenue because of a contract with

another municipality relating to the operation of a toll bridge

over the Rio Grande may appropriate or pledge all or any part of

that revenue to:

(1) redeem or pay the principal of or interest on any bond,

note, or warrant that the municipality is authorized to issue; or

(2) retire any other debt the municipality is authorized to

incur.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

Sec. 1509.902. AUTHORITY TO ISSUE BONDS PAYABLE FROM TOLL BRIDGE

REVENUE; PLEDGE OF TOLL BRIDGE REVENUE. (a) This section

applies only to a municipality that:

(1) has located within its municipal boundaries or within 15

miles of its municipal boundaries a toll bridge over the Rio

Grande; and

(2) receives revenue because of that bridge, including revenue

received under a contract with another municipality relating to

the operation of that bridge.

(b) The municipality may issue revenue bonds under this section

payable from revenue received because of the toll bridge to

acquire, construct, repair, extend, or improve any public

building, utility system, or other public property or facility

the governing body of the municipality considers necessary and

appropriate.

the governing body of the municipality authorizes the issuance by

ordinance.

(d) Subject to any covenant relating to an outstanding bond of

the municipality, a municipality may appropriate or pledge to the

payment of bonds issued under this section all or any part of the

revenue the municipality receives because of the toll bridge.

(e) A bond issued under this section must mature not later than

40 years after its date.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,

1999.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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