Trust Indenture

Sec. 11006.258. TRUST INDENTURE. (a) Authority 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 this 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 authority money or sell authority property on the approval of a licensed engineer selected as provided by the trust indenture; and (5) provide for the investment of authority money. Added by Acts 2015, 84th Leg., R.S., Ch. 855 (S.B. 1162), Sec. 1.07, eff. April 1, 2017.