Tex. Loc. Gov't Code § 303.074 · Subchapter C. BONDS
USE OF PROCEEDS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The proceeds of the bonds of a corporation may be used to:
(1) finance, refinance, or provide one or more public facilities;
(2) maintain reserve funds determined by the sponsor and the corporation to be necessary and appropriate; or
(3) pay any costs relating to the issuance or incurrence of bonds by the corporation and the purchase of sponsor obligations by the corporation, including:
(A) the cost of:
(i) financing charges and interest on the bonds;
(ii) financing, legal, accounting, financial advisory, and appraisal fees, expenses, and disbursements;
(iii) an insurance policy;
(iv) printing, engraving, and reproduction services;
(v) the initial and acceptance fees of a trustee, paying agent, bond registrar, or authenticating agent; and
(vi) a credit agreement; and
(B) reasonable amounts to reimburse the corporation for time spent by its agents or employees with respect to the issuance, incurrence, or purchase.
(b) The purchase by the corporation of a sponsor obligation does not extinguish the debt represented by the sponsor obligation.
(c) Pending a use described by Subsection (a), the proceeds may be invested in accordance with Section 303.041.
Notes and commentary — not statutory text
History
Added by Acts 1999, 76th Leg., ch. 227, Sec. 11, eff. Sept. 1, 1999.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/LG/htm/LG.303.htm
- Text hash
- sha256 570d86d309a79380c8db899ac9093916dc1c3d38fdfbb101444680465c4f7b23
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
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Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.