Local governing bodies may issue revenue bonds for recreational facilities and choose how to secure, sell, redeem, and use bond proceeds.
Sec. 45.032. REVENUE BONDS. To provide funds to acquire, construct, improve, or equip gymnasia, stadia, or other recreational facilities, the board, city council or commission, or commissioners court may issue revenue bonds payable from and secured by liens on and pledges of all or any part of any of the revenues from any rentals, rates, charges, or other revenues from any or all of the facilities, in the manner provided by this subchapter. The bonds may be additionally secured by mortgages and deeds of trust on any real property on which any of the facilities are or will be located, or any real or personal property incident or appurtenant to the facilities, and the board, city council or commission, or commissioners court may authorize the execution and delivery of trust indentures, mortgages, deeds of trust, or other forms of encumbrances to evidence those liens. The bonds may be issued to mature serially or otherwise not to exceed 50 years from their date. In the authorization of any of those bonds, the board, city council or commission, or commissioners court may provide for the subsequent issuance of additional parity bonds, or subordinate lien bonds, or other types of bonds, under the terms set forth in the resolution or order authorizing the issuance of the bonds, all within the discretion of the board, city council or commission, or commissioners court. The bonds may be made redeemable before maturity. The bonds may be sold in the manner, at the price, and under the terms provided by the board, city council or commission, or commissioners court in the resolution or order authorizing the issuance of the bonds. If permitted by the bond resolution or order, any required part of the proceeds from the sale of the bonds may be: (1) used for paying interest on the bonds during the period of the construction of any facilities to be provided through the issuance of the bonds; (2) used for paying the operation and maintenance expenses of facilities to the extent and for the period specified in the bond resolution; (3) used for creating reserves for the payment of the principal of and interest on the bonds; or (4) invested, until needed, to the extent and in the manner provided in the bond resolution or order. Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.