Tex. Loc. Gov't Code § 501.211 · Subchapter E. CORPORATE POWERS AND LIMITATIONS RELATING TO BONDS
USE OF BOND PROCEEDS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The proceeds of the bonds of each issue shall be:
(1) used to pay or make a loan in the amount of all or part of the cost of the project or projects for which the bonds were authorized; and
(2) disbursed in the manner and under any restrictions provided in the resolution authorizing the issuance of the bonds or in any trust agreement securing the bonds.
(b) Bond proceeds may be used to:
(1) pay all costs incurred in issuing the bonds;
(2) pay interest on the bonds for any time determined by the board of directors of the corporation issuing the bonds; and
(3) establish reserve funds and sinking funds for the bonds.
(c) If the proceeds of the bonds of any series issued for a project exceed the cost of the project for which the bonds were issued, the surplus shall be:
(1) deposited to the credit of the sinking fund for the bonds; or
(2) used to purchase bonds in the open market.
Notes and commentary — not statutory text
History
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/LG/htm/LG.501.htm
- Text hash
- sha256 be8a689243d6e568744ec524cce37f1cf077135a4e2c1b389f53ecf2278a719e
- 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
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.