A bond resolution may include approved provisions about redemption, funds, pledged revenue, bond use, rates and charges, additional bonds, property-related insurance, contract changes with bondholders, and customary indentures.
Sec. 8513.0705. RESOLUTION PROVISIONS. (a) A resolution authorizing bonds may contain provisions approved by the board that are not inconsistent with this chapter, including provisions: (1) reserving the right to redeem the bonds at a time, in an amount, and at a price not to exceed 105 percent of the principal amount of the bonds, plus accrued interest; (2) providing for the setting aside of sinking funds or reserve funds and the regulation and disposition of those funds; (3) securing the payment of the principal of and interest on the bonds and of the sinking fund or reserve fund payments associated with the bonds by pledging all or any part of the gross or net revenue subsequently received by the authority from any source; (4) prescribing the purposes to which the bonds or any bonds subsequently issued, or the proceeds of the bonds, may be applied; (5) agreeing to set and collect rates and charges sufficient to produce net revenue adequate to pay the items described by Subdivisions (1), (2), and (3), and prescribing the use and disposition of all revenue; (6) prescribing limitations on the issuance of additional bonds and on the agreements that may be made with the purchasers and successive holders of those bonds; (7) regarding the construction, extension, improvement, reconstruction, operation, maintenance, and repair of the authority's properties and the carrying of insurance on all or any part of those properties covering: (A) loss, damage, or loss of use and reconstruction, operation, maintenance, and repair; and (B) loss, damage, or loss of use and occupancy resulting from specified risks; (8) setting the procedure by which the authority may change the terms of a contract with the bondholders, the amount of bonds the holders of which must consent to that change, and the manner in which the consent may be given; and (9) providing for the execution and delivery by the authority to a bank or trust company authorized by law to accept trusts, or to the United States or any officer of the United States, of indentures and agreements for the benefit of the bondholders setting forth any of the agreements authorized by this chapter to be made with or for the benefit of the bondholders and any other provisions that are customary in such indentures or agreements. (b) A provision authorized by this section that is contained in a bond resolution is part of the contract between the authority and the bondholders. Added by Acts 2025, 89th Leg., R.S., Ch. 240 (H.B. 2692), Sec. 1, eff. May 29, 2025.