An authority may issue transportation revenue bonds, set their terms in the bond resolution, and must use bond proceeds and any surplus as this section requires.
Sec. 370.111. TRANSPORTATION REVENUE BONDS. (a) An authority, by bond resolution, may authorize the issuance of bonds to pay all or part of the cost of a transportation project, to refund any bonds previously issued for the transportation project, or to pay for all or part of the cost of a transportation project that will become a part of another system. (b) As determined in the bond resolution, the bonds of each issue shall: (1) be dated; (2) bear interest at the rate or rates provided by the bond resolution and beginning on the dates provided by the bond resolution and as authorized by law, or bear no interest; (3) mature at the time or times provided by the bond resolution, not exceeding 40 years from their date or dates; and (4) be made redeemable before maturity at the price or prices and under the terms provided by the bond resolution. (c) An authority may sell the bonds at public or private sale in the manner and for the price it determines to be in the best interest of the authority. (d) The proceeds of each bond issue shall be disbursed in the manner and under any restrictions provided in the bond resolution. (e) Additional bonds may be issued in the same manner to pay the costs of a transportation project. Unless otherwise provided in the bond resolution, the additional bonds shall be on a parity, without preference or priority, with bonds previously issued and payable from the revenue of the transportation project. In addition, an authority may issue bonds for a transportation project secured by a lien on the revenue of the transportation project subordinate to the lien on the revenue securing other bonds issued for the transportation project. (f) If the proceeds of a bond issue exceed the cost of the transportation project for which the bonds were issued, the surplus shall be segregated from the other money of the authority and used only for the purposes specified in the bond resolution. (g) Bonds issued and delivered under this chapter and interest coupons on the bonds are a security under Chapter 8, Business & Commerce Code. (h) Bonds issued under this chapter and income from the bonds, including any profit made on the sale or transfer of the bonds, are exempt from taxation in this state. (i) Bonds issued under this chapter shall be considered authorized investments under Chapter 2256, Government Code, for this state, any governmental entity, and any other public entity proposing to invest in the bonds. Added by Acts 2003, 78th Leg., ch. 1325, Sec. 2.01, eff. June 21, 2003.