Trust Indenture

Sec. 11003.258. TRUST INDENTURE. (a) District bonds, including refunding bonds, that are not payable wholly from ad valorem taxes may be additionally secured by a trust indenture. The trustee may be a bank with trust powers located inside or outside the state. (b) A trust indenture, regardless of the existence of a deed of trust or mortgage lien on property, may: (1) provide for the security of the bonds and the preservation of the trust estate as prescribed by the board; (2) provide for amendment or modification of the trust indenture; (3) provide for the issuance of bonds to replace lost or mutilated bonds; (4) condition the right to spend district money or sell district property on the approval of a licensed engineer selected as provided by the trust indenture; and (5) provide for the investment of district money. Added by Acts 2013, 83rd Leg., R.S., Ch. 112 (S.B. 1026), Sec. 1.07, eff. April 1, 2015.