Bond Provisions

Sec. 283.206. BOND PROVISIONS. (a) A bond authorized by this chapter shall contain the following clause: "The holder hereof shall never have the right to demand payment of this obligation out of any funds raised or to be raised by taxation." (b) A bond instrument may contain provisions: (1) that restrict individual rights of action of a bondholder; (2) that detail the rights and remedies of a bondholder and a trustee; (3) to protect and enforce as reasonable the rights and remedies of a bondholder, including covenants detailing the duties of the county in: (A) acquiring property and constructing, maintaining, operating, repairing, and insuring the project; and (B) maintaining custody of the bond proceeds and revenues and safeguarding and applying the funds; and (4) to secure as reasonable a bondholder, including covenants detailing: (A) an event that constitutes an event of default; (B) terms and conditions that would or could result in an acceleration of the bond maturity date; and (C) rights, liabilities, powers, and duties that arise because of a breach by the county. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.