Water Code § 65.504

Sec. 65.504. ADDITIONAL SECURITY FOR BONDS OR NOTES. (a) The bonds or notes, within the discretion of the board, may be additionally secured by a deed of trust or mortgage lien on all or part of the physical properties of the district, and franchises, easements, water rights, and appropriation permits, leases, and contracts and all rights appurtenant to those properties, vesting in the trustee power to sell the property for payment of the indebtedness, power to operate the property, and all other authority necessary for the further security of the bonds or notes. (b) The trust indenture, regardless of the existence of the deed of trust or mortgage lien on any property, may: (1) include provisions prescribed by the board for the security of the bonds or notes and the preservation of the trust estate; (2) make provision for amendment or modification; (3) condition the right to spend district money or sell district property on approval of a registered professional engineer selected as provided in the trust indenture; and (4) make provision for investment of funds of the district. (c) Any purchaser under a sale under the deed of trust or mortgage lien, if one is given, is absolute owner of the property, facilities, and rights purchased and is entitled to maintain and operate them. Added by Acts 1983, 68th Leg., p. 2448, ch. 435, Sec. 4, eff. Aug. 29, 1983. Amended by Acts 1985, 69th Leg., ch. 447, Sec. 1, eff. Nov. 15, 1985.