CHAPTER 6906. CORYELL CITY WATER SUPPLY DISTRICT

State Codes and Statutes

Statutes > Texas > Special-district-local-laws-code > Title-6-water-and-wastewater > Chapter-6906-coryell-city-water-supply-district

SPECIAL DISTRICT LOCAL LAWS CODE

TITLE 6. WATER AND WASTEWATER

SUBTITLE B. FRESH WATER SUPPLY DISTRICTS

CHAPTER 6906. CORYELL CITY WATER SUPPLY DISTRICT

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 6906.001. DEFINITIONS. In this chapter:

(1) "Board" means the district's board of directors.

(2) "Bond" means a bond or note.

(3) "Director" means a member of the board.

(4) "District" means the Coryell City Water Supply District.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.002. NATURE OF DISTRICT. The district is a

conservation and reclamation district in Coryell County created

under Section 59, Article XVI, Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.003. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The

district is created to serve a public use and benefit.

(b) All land and other property included in the boundaries of

the district and other areas to be served by the district's works

and projects will benefit from the works and projects

accomplished by the district under the powers conferred by

Section 59, Article XVI, Texas Constitution.

for the benefit of the people of this state for the improvement

of their property and industries. The district, in carrying out

the purposes of this chapter, will be performing an essential

public function under the constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.004. DISTRICT TERRITORY. (a) The district is

composed of the territory described by Section 2, Chapter 435,

Acts of the 66th Legislature, Regular Session, 1979, as that

territory may have been modified under:

(1) Subchapter J, Chapter 49, Water Code; or

(2) other law.

(b) The boundaries and field notes of the district form a

closure. A mistake in the field notes or in copying the field

notes in the legislative process does not affect:

(1) the district's organization, existence, and validity;

(2) the district's right to issue any type of bond for a purpose

for which the district is created or to pay the principal of and

interest on the bond;

(3) the district's right to impose a tax; or

(4) the legality or operation of the district or its governing

body.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

SUBCHAPTER B. BOARD OF DIRECTORS

Sec. 6906.051. COMPOSITION OF BOARD; TERMS. (a) The district

is governed by a board of 11 directors, each of whom occupies a

numbered place on the board.

(b) Directors serve staggered two-year terms, with the terms of

the directors occupying Places 1, 2, 3, 4, and 5 expiring on

April 1 of each even-numbered year and the terms of the directors

occupying Places 6, 7, 8, 9, 10, and 11 expiring April 1 of each

odd-numbered year.

County shall appoint directors to succeed directors whose term of

office will expire on April 1. The appointed directors' terms

begin on April 1 of that year.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.052. QUALIFICATIONS FOR OFFICE. (a) Directors must

be appointed from areas in Coryell County as follows:

(1) one each from the Oglesby-Mound area and Levita area;

(2) two each from the Pancake area, Jonesboro area, and

Turnersville area; and

(3) three from the Coryell City area.

(b) To be eligible to succeed a director whose term of office is

about to expire, a person must be appointed from the same

geographical area as the geographical area that the director

represents.

(d) To be eligible to be appointed or to serve as a director, a

person must be a resident, qualified voter of the geographical

area from which the person is appointed.

(e) A director may not hold any other public office.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.053. VACANCIES. Any vacancy occurring on the board

shall be filled for the unexpired term by appointment in the

manner in which the vacating director was appointed.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.054. REMOVAL FROM OFFICE. After reasonable notice and

a public hearing, the board may remove a director from office for

misfeasance, malfeasance, or wilful neglect of duty. Reasonable

notice and a public hearing are not required if the notice and

hearing are expressly waived in writing.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.055. BOARD RESOLUTIONS; VOTING REQUIREMENTS. (a) The

district shall act by resolutions adopted by the board.

(b) All directors are entitled to vote.

is necessary to adopt a resolution.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.056. OFFICERS AND ASSISTANTS. (a) The board shall

elect a president, vice president, secretary, and treasurer at

the first meeting of the newly constituted board each year and at

any time necessary to fill a vacancy.

(b) The board shall elect the president and vice president from

among the directors.

(1) may be held by one person; and

(2) are not required to be held by a director.

(d) The board may appoint as assistant board secretary one or

more persons who are not directors.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.057. DUTIES OF OFFICERS AND ASSISTANTS. (a) The

board president shall preside at board meetings and perform other

duties prescribed by the board.

(b) The board treasurer shall perform duties and functions

prescribed by the board.

minutes, books, records, and seal of the board and shall perform

other duties and functions prescribed by the board. An assistant

board secretary may perform any duty or function of the board

secretary.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.058. MEETINGS. The board shall have regular meetings

at times specified by board resolution and shall have special

meetings when called by the board president or by any two

directors.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.059. PERSONAL LIABILITY OF DIRECTORS. A director is

not personally liable for any bond issued or contract executed by

the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 6906.101. GENERAL POWERS. The district has all powers

necessary or appropriate to achieve the purposes of this chapter.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.102. GENERAL POWERS REGARDING WATER. The district has

all rights, powers, and privileges necessary or useful to enable

it to acquire, provide, supply, deliver, and sell potable water

for any beneficial purpose in its boundaries and vicinity and in

Coryell and McLennan Counties.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.103. GENERAL POWERS REGARDING WASTE. (a) The

district has all rights, powers, and privileges necessary or

useful to enable it to collect, transport, dispose of, and

control domestic, industrial, or communal wastes, whether in

fluid, solid, or composite state, inside and outside its

boundaries.

(b) The district may exercise any power granted by Chapter 30,

Water Code, to a district created under Section 59, Article XVI,

Texas Constitution.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.104. DISTRICT BYLAWS AND RULES. The district may

adopt and enforce:

(1) bylaws and rules for the conduct of its affairs; and

(2) rules that a municipal utility district may adopt and

enforce under Sections 54.205 et seq., Water Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.105. PROPERTY ACQUISITION, USE, AND DISPOSITION. (a)

The district may acquire, own, rent, lease, accept, hold, or

dispose of property, or an interest in property, including a

right or easement, by purchase, exchange, gift, assignment,

condemnation, sale, lease, or otherwise, in performing district

duties or exercising district powers under this chapter.

(b) The district may hold, manage, operate, or improve property.

structure, or facility from or to any person to achieve the

purposes of this chapter.

(d) The district may sell, assign, lease, encumber, mortgage, or

otherwise dispose of property, or an interest in property, and

release or relinquish a right, title, claim, lien, interest,

easement, or demand, regardless of the manner in which acquired,

and conduct a transaction authorized by this subsection by public

or private sale, with or without public bidding, notwithstanding

any other law.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.106. REQUESTS FOR AND ACCEPTANCE OF AID. The district

may request and accept an appropriation, grant, allocation,

subsidy, guarantee, aid, service, material, or gift from any

public or private source, including the federal government, the

state, a public agency, or a political subdivision.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.107. DISTRICT OFFICE. The district may operate and

maintain an office.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.108. PERSONNEL. The district may appoint and

determine the duties, tenure, qualifications, and compensation of

district officers and employees, as well as any agent,

professional advisor, or counselor, including any financial

consultant, accountant, attorney, architect, engineer, appraiser,

or financing expert, considered necessary or advisable by the

board.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.109. PERMITS. (a) The district may obtain through

appropriate proceedings permits from the Texas Commission on

Environmental Quality.

(b) The district may acquire water appropriation permits from

owners of permits by contract or otherwise.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.110. GENERAL CONTRACT POWERS. (a) The district may

enter into and enforce a contract or agreement necessary or

convenient to the exercise of the powers, rights, privileges, and

functions conferred on the district by this chapter or the

general law, including a contract or agreement with any person as

the board considers necessary or proper for, or in connection

with, any power or function of the district for:

(1) the purchase or other acquisition, storage, transportation,

distribution, delivery, or sale of water;

(2) the collection, transportation, processing, or disposal of

waste; or

(3) the construction, acquisition, ownership, financing,

operation, maintenance, sale, leasing to or from, or other use or

disposition of any facilities authorized to be developed,

acquired, or constructed under this chapter or the general law.

(b) The authority to enter into or enforce the contract or

agreement includes the authority to enter into or enforce a

contract or agreement regarding:

(1) any improvements, structures, facilities, equipment, and

other property of any kind in connection with the subject of the

contract or agreement;

(2) any related land, leaseholds, and easements; and

(3) any interests in the property.

(1) may not have a term of more than 40 years; and

(2) may contain provisions the board determines to be in the

best interest of the district.

(d) The district may pledge all or part of its revenue to the

payment of its obligations under the contract or agreement to the

same extent and on the same conditions as it may pledge revenue

to secure district bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.111. AUTHORITY OF PUBLIC AGENCIES AND POLITICAL

SUBDIVISIONS TO CONTRACT WITH DISTRICT. (a) A public agency or

political subdivision of this state may enter into a contract or

agreement with the district, on terms agreed to by the parties,

for:

(1) the purchase or sale of water;

(2) waste collection, processing, or disposal; or

(3) any purpose relating to the district's powers or functions.

(b) Approval, notice, consent, or an election is not required in

connection with a contract or agreement.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.112. ACQUISITION OF LAND; STORAGE CAPACITY. (a) The

district may acquire land, or an interest in land, inside or

outside the district for any work, plant, or other facility

necessary or useful to divert, impound, store, drill for, pump,

treat, or transport water for municipal, domestic, industrial,

mining, oil flooding, or any other useful purpose.

(b) The district may lease, purchase, or otherwise acquire

rights in and to storage and storage capacity in any reservoir

constructed or to be constructed by the United States or any

other person.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.113. CONSTRUCTION CONTRACTS. (a) The district may

award a construction contract that requires an expenditure of

more than $5,000 only after publication of notice to bidders once

each week for two consecutive weeks in a newspaper of general

circulation in the district.

(b) The notice is sufficient if it states:

(1) the time and place for opening the bids;

(2) the general nature of the work to be done;

(3) the material, equipment, or supplies to be purchased; and

(4) where the terms of bidding and copies of the plans and

specifications may be obtained.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.114. CONVEYANCE OF LAND TO DISTRICT. A public agency

or political subdivision of this state may lease, sell, or

otherwise convey to the district any of its land, improvements,

property, plants, lines, or other facilities related to the

supply of water or the collection, processing, or disposal of

waste for any consideration that the parties agree is adequate.

Approval, notice, consent, or an election is not required in

connection with a conveyance, contract, or agreement.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.115. DISPOSAL OF PROPERTY. Subject to the terms of a

resolution or deed of trust authorizing or securing bonds issued

by the district, the district may sell, lease, rent, trade, or

otherwise dispose of property under terms considered by the board

to be consistent with district purposes.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.116. EMINENT DOMAIN. (a) To carry out a power

provided by this chapter, the district may exercise the power of

eminent domain to acquire the fee simple title to land, or any

other interest in land, and other property and easements, inside

or outside the district.

(b) The district must exercise the power of eminent domain in

the manner provided by Chapter 21, Property Code, except that the

district is not required to:

(1) give bond for appeal or bond for costs in a condemnation or

other suit to which it is a party; or

(2) deposit double the amount of an award in a suit.

Chapter 21, Property Code.

(d) The board shall determine the amount and the type of

interest in land, other property, or easements to be acquired.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.117. COST OF RELOCATING OR ALTERING PROPERTY. (a) In

this section, the term "sole expense" means the actual cost of

the relocation, raising, lowering, rerouting, or change in grade

or alteration of construction required under Subsection (b) to

provide a comparable replacement without enhancing the facility,

after deducting the net salvage value derived from the old

facility.

(b) If the district's exercise of its eminent domain, police, or

other power requires relocating, raising, lowering, rerouting,

changing the grade of, or altering the construction of any

railroad, electric, transmission, telegraph, or telephone line,

conduit, pole, property or facility, or pipeline, the action

shall be accomplished at the sole expense of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.118. RIGHTS-OF-WAY; EASEMENTS. The district has all

necessary or useful right-of-way and easements along, over,

under, and across all public, state, municipal, and county roads,

highways, and places for any of its purposes. The district shall

restore a facility used to its previous condition as nearly as

possible at the sole expense of the district.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.119. SEAL. The district may adopt an official seal.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS

Sec. 6906.151. DISTRICT MONEY. The district may acquire, hold,

use, and dispose of its receipts and money from any source.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.152. AUTHORITY TO BORROW MONEY AND ISSUE BONDS. The

district, in the manner and to the extent permitted by this

chapter, may:

(1) borrow money for any of its corporate purposes;

(2) enter into agreements in connection with the borrowing;

(3) issue its bonds for money borrowed;

(4) provide for and secure the payment of its bonds; and

(5) provide for the rights of the holders of its bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.153. DEPOSITORY. (a) The board shall designate one or

more banks or savings and loan associations inside or outside the

district to serve as the depository for the district's money.

(b) All of the district's money shall be deposited in the

depository designated by the board, except that:

(1) bond proceeds and money pledged to pay bonds, to the extent

provided in a resolution or trust indenture authorizing or

securing district bonds, may be deposited with another bank or

trustee named in the bond resolution or trust indenture; and

(2) money shall be remitted to each paying agent for the payment

of principal of and interest on the bonds.

bank is not insured by the Federal Deposit Insurance Corporation,

the money must be secured in the manner provided by law for the

security of county funds in this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.154. INVESTMENT OF DISTRICT MONEY. The board may

invest district money in obligations and make time deposits of

district money in a manner determined by the board or in the

manner permitted or required in a resolution or trust indenture

authorizing or securing district bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.155. DISTRICT FACILITIES EXEMPT FROM TAXATION AND

ASSESSMENT. The district is not required to pay a tax or

assessment on its facilities or any part of its facilities.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

SUBCHAPTER E. BONDS

Sec. 6906.201. AUTHORITY TO ISSUE BONDS. (a) The district may

issue bonds payable from and secured by district revenue to carry

out any purpose or power conferred on the district by this

chapter. The bonds must be authorized by a board resolution.

(b) The bonds must be issued in the manner and under the terms

of the resolution authorizing the issuance of the bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.202. FORM OF BONDS. District bonds must be:

(1) issued in the district's name;

(2) signed by the president or vice president; and

(3) attested by the secretary.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.203. MATURITY. District bonds must mature not later

than 40 years after the date of their issuance.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.204. BONDS SECURED BY REVENUE; ADDITIONAL BONDS. (a)

District bonds may be secured by a pledge of all or part of the

district's revenue, or by all or part of the payments or rentals

under one or more contracts or leases specified by board

resolution or a trust indenture securing the bonds.

(b) A resolution authorizing the issuance of bonds secured by a

pledge of revenue of all or part of the district's facilities may

provide that the district shall first pay the expenses of

operating and maintaining all or part of the facilities as the

board considers appropriate before paying the principal of and

interest on the bonds.

revenue, contract payments, or lease rentals may reserve to the

district the right, under conditions specified by the resolution,

to issue additional bonds that will be on a parity with, superior

to, or subordinate to the bonds then being issued.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.205. ADDITIONAL SECURITY. (a) District bonds may be

additionally secured, at the discretion of the board, by a deed

of trust or mortgage lien on all or part of the district's

physical property, facilities, easements, franchises, water

rights and appropriation permits, leases, 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.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.206. TRUST INDENTURE. (a) District bonds, including

refunding bonds, may be additionally secured by a trust

indenture. The trustee may be a bank with trust powers located

inside or outside the state.

(b) A trust indenture, regardless of the existence of a deed of

trust or mortgage lien on the property, may:

(1) provide for the security of the bonds and the preservation

of the trust estate in the manner prescribed by the board;

(2) provide for amendment or modification of the trust

indenture;

(3) provide for the issuance of bonds to replace lost or

mutilated bonds;

(4) condition the right to spend district money or sell district

property on the approval of a licensed engineer selected as

provided by the trust indenture; and

(5) provide for the investment of district money.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.207. CHARGES FOR DISTRICT SERVICES. If district bonds

payable wholly from revenue are issued, the board shall set and

revise the rates, fees, and charges assessed for water sold and

waste collection and treatment services provided by the district.

The rates, fees, and charges must be sufficient to:

(1) pay the expense of operating and maintaining the district

facilities that generate the revenue from which the bonds will be

paid;

(2) pay the principal of and interest on the bonds when due; and

(3) maintain the reserve fund and other funds as provided in the

resolution authorizing the bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.208. STATE PLEDGE REGARDING RIGHTS AND REMEDIES OF

BONDHOLDERS. Without depriving this state of its power to

regulate and control the rates, fees, and charges assessed for

water sold and waste collection and treatment services provided

by the district, the state pledges to and agrees with the holders

of district bonds that the state will not exercise its power to

regulate and control the rates, fees, and charges in any way that

would impair the rights or remedies of the holders of the bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.209. USE OF BOND PROCEEDS. (a) The district may set

aside an amount of proceeds from the sale of district bonds for:

(1) the payment of interest expected to accrue during

construction not to exceed three years;

(2) a debt service reserve fund; and

(3) other funds as may be provided in the resolution authorizing

the bonds or in the trust indenture.

(b) The district may use proceeds from the sale of the bonds to

pay any expense necessarily incurred in accomplishing the purpose

of the district, including any expense of issuing and selling the

bonds.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.210. APPOINTMENT OF RECEIVER. (a) On default or

threatened default in the payment of the principal of or interest

on district bonds that are payable wholly or partly from revenue,

a court may, on petition of the holders of outstanding bonds,

appoint a receiver for the district.

(b) The receiver may collect and receive all district income,

employ and discharge district agents and employees, take charge

of money on hand, and manage the proprietary affairs of the

district without consent or hindrance by the board.

sale of water or the collection, processing, or disposal of waste

or to renew contracts with the approval of the court that

appointed the receiver.

(d) The court may vest the receiver with any other power or duty

the court finds necessary to protect the bondholders.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.211. REFUNDING BONDS. (a) The district may issue

refunding bonds to refund outstanding district bonds and interest

on those bonds.

(b) Refunding bonds may:

(1) be issued to refund bonds of more than one series;

(2) combine the pledges for the outstanding bonds for the

security of the refunding bonds; or

(3) be secured by a pledge of other or additional revenue or

mortgage liens.

other bonds, their security, and the remedies of the holders

apply to refunding bonds.

(d) The comptroller shall register the refunding bonds on the

surrender and cancellation of the bonds to be refunded.

(e) Instead of issuing bonds to be registered on the surrender

and cancellation of the bonds to be refunded, the district, in

the resolution authorizing the issuance of the refunding bonds,

may provide for the sale of the refunding bonds and the deposit

of the proceeds in a bank at which the bonds to be refunded are

payable. In that case, the refunding bonds may be issued in an

amount sufficient to pay the principal of and interest and any

required redemption premium on the bonds to be refunded to any

redemption date or to their maturity date, and the comptroller

shall register the refunding bonds without the surrender and

cancellation of the bonds to be refunded.

(f) The district may also issue refunding bonds under any other

applicable law.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.212. OTHER REMEDIES AND COVENANTS. The resolution

authorizing the issuance of any district bonds, including

refunding bonds, or the trust indenture securing the bonds, may

provide other remedies and covenants the board considers

necessary to issue the bonds on the most favorable terms.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.213. LIMITATION ON RIGHTS OF BONDHOLDERS. The

resolution authorizing the bonds or the trust indenture securing

the bonds may limit or qualify the rights of the holders of less

than all of the outstanding bonds payable from the same source to

institute or prosecute litigation affecting the district's

property or income.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

Sec. 6906.214. BONDS EXEMPT FROM TAXATION. A district bond, the

transfer of the bond, and the income from the bond, including

profits made on the sale of the bond, are exempt from taxation in

this state.

Added by Acts 2007, 80th Leg., R.S., Ch.

920, Sec. 1.06, eff. April 1, 2009.

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State Codes and Statutes

State Codes and Statutes

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