Agriculture Code § 60.103

Sec. 60.103. BONDS. (a) The district may issue any type of bond, including an anticipation note or refunding bond, for any district purpose. A bond may be issued under Chapter 1371, Government Code. (b) When authorizing the issuance of a bond, the district may also authorize the later issuance of a parity or subordinate lien bond. (c) A district bond must: (1) mature not later than 40 years after its date of issuance; and (2) state on its face that the bond is not an obligation of the state. (d) A district bond may be payable from or secured by: (1) any source of money, including district revenue, loans, or assessments; or (2) a lien, pledge, mortgage, or other security interest on district revenue or property. (e) The district may use bond proceeds for any purpose, including to pay: (1) into a reserve fund for debt service; (2) for the acquisition, design, construction, repair, maintenance, or replacement of property, including buildings and equipment; (3) administrative and operating expenses; (4) all expenses incurred or that will be incurred in the issuance, sale, and delivery of the bonds; (5) the principal of and interest on bonds; or (6) for the operation of an agricultural enterprise. (f) The district may contract with a bondholder to impose an assessment to pay for the operation of an agricultural enterprise. Added by Acts 2001, 77th Leg., ch. 1393, Sec. 1, eff. June 16, 2001.