Bond indentures for bonds issued under this chapter may secure the bonds, assign toll revenue, and set terms for bondholder rights, defaults, and remedies; they may not convey or mortgage the project.
Sec. 366.115. BOND INDENTURE. (a) Bonds issued under this chapter may be secured by a bond indenture between the authority and a corporate trustee that is a trust company or a bank that has the powers of a trust company. (b) A bond indenture may pledge or assign the tolls and other revenue to be received but may not convey or mortgage any part of a turnpike project or system. (c) A bond indenture may: (1) set forth the rights and remedies of the bondholders and the trustee; (2) restrict the individual right of action by bondholders as is customary in trust agreements or indentures of trust securing corporate bonds and debentures; and (3) contain provisions the authority determines reasonable and proper for the security of the bondholders, including covenants: (A) establishing the authority's duties relating to: (i) the acquisition of property; (ii) the construction, maintenance, operation, and repair of and insurance for a turnpike project or system; and (iii) custody, safeguarding, and application of money; (B) prescribing events that constitute default; (C) prescribing terms on which any or all of the bonds become or may be declared due before maturity; and (D) relating to the rights, powers, liabilities, or duties that arise on the breach of an authority's duty. (d) The expenses incurred in carrying out a trust agreement may be treated as part of the cost of operating the turnpike project. (e) In addition to all other rights by mandamus or other court proceeding, an owner or trustee of a bond issued under this chapter may enforce the owner's rights against an issuing authority, the authority's employees, the authority's board, or an agent or employee of the authority's board and is entitled to: (1) require the authority and the board to impose and collect tolls, charges, and other revenue sufficient to carry out any agreement contained in the bond proceedings; and (2) apply for and obtain the appointment of a receiver for the turnpike project or system. Added by Acts 1997, 75th Leg., ch. 1171, Sec. 7.24, eff. Sept. 1, 1997.