Tex. Transp. Code § 284.042 · Subchapter B. BOND PROVISIONS
USE OF BOND PROCEEDS; LIEN.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) The proceeds of bonds issued under this chapter:
(1) may be used only to pay the costs of the project described by Section 284.043; and
(2) shall be disbursed under the restrictions the bond instrument provides.
(b) Project operating and maintenance costs to be paid from proceeds of bonds payable in whole or in part from project revenue may include only items expressly defined in the proceedings authorizing the bonds.
(c) Notwithstanding Subsection (a), bond proceeds that remain after the project costs are paid in full shall be used to pay interest on and retire the bonds, unless otherwise provided in the bond instrument.
(d) Unless otherwise provided in the bond instrument, if the bond proceeds are not sufficient to pay all the project costs, additional bonds may be issued up to the amount necessary to pay the remaining costs. The additional bonds are considered to be of the same issue as the original bonds and are entitled to payment from the same fund, without preference for the bonds first issued.
(e) The bondholder or a bond trustee has a lien on the bond proceeds.
Notes and commentary — not statutory text
History
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/TN/htm/TN.284.htm
- Text hash
- sha256 06a3fb3f626a33ff45164015009b4f540657589b8d1d3c9c24897e2d7b738c3a
- 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
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Transportation Code
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