2023 Texas Statutes › Special District Local Laws Code › Title 6 - Water and Wastewater › Subtitle F - Municipal Utility Districts › Chapter 8104 - Baytown Area Water Authority › Subchapter G. Bonds and Notes › Section 8104.305. Resolution and Trust Indenture Provisions

Sec. 8104.305.  RESOLUTION AND TRUST INDENTURE PROVISIONS.  (a)  A board resolution authorizing bonds or notes or a trust indenture securing bonds or notes may contain provisions that:
(1)  to secure the payment of the bonds or notes, pledge all or a designated part of the authority's revenue and receipts from the planning, financing, ownership, operation, or leasing of, or otherwise in connection with, a specified facility or asset, or that are otherwise connected to the facility or asset;
(2)  to secure the payment of the bonds or notes, pledge all or part of the authority's assets, including an obligation acquired by the authority;
(3)  relate to the use and disposition of rents, rates, fees, and other charges made or received by the authority;
(4)  pledge to set, charge, alter, and collect rents, rates, fees, or other charges for a designated facility or asset that will produce revenue adequate to:
(A)  pay all expenses necessary to operate and maintain the designated facility or asset;
(B)  pay the interest on and principal of all bonds or notes issued and payable from the revenues and receipts as the interest and principal become due and payable;
(C)  pay all sinking fund, reserve fund, or other fund payments agreed to be made related to any bonds or notes payable out of the revenues and receipts as the payments become due and payable; and
(D)  fulfill the terms of an agreement made with:
(i)  the bond or note holders; or
(ii)  a person on behalf of the bond or note holders;
(5)  set aside the reserves or sinking funds and that provide for the regulation and disposition of the reserves or sinking funds;
(6)  limit the purpose to which the proceeds from the sale of the bonds or notes may be applied and that pledge the proceeds to secure the payment of the bonds or notes;
(7)  limit the issuance of additional bonds and the refunding of outstanding or other bonds or notes;
(8)  relate to the acquisition, construction, improvement, operation, extension, enlargement, maintenance, or repair of a facility or asset and the duties of the authority relating to the facility or asset;
(9)  relate to the procedure by which the terms of an agreement with the bond or note holders may be amended or abrogated, the amount of bonds or notes the holders of which are required to give consent to, and the manner in which the consent may be given;
(10)  limit the amount of money to be spent by the authority for administrative or other expenses;
(11)  vest in a trustee or other fiduciary the property, rights, powers, and duties in trust as the authority determines, including the rights, powers, and duties of the trustee appointed by the bond or note holders under this chapter;
(12)  abrogate the right of the bond or note holders to appoint a trustee under this chapter or limit the rights, powers, and duties of the trustee;
(13)  provide for the management, operation, and control of a specified authority facility or asset by a board of trustees to be named in the resolution or trust indenture and that specify:
(A)  the terms of office of the board of trustees;
(B)  the powers and duties of the board of trustees;
(C)  the manner of exercising those powers and duties;
(D)  the appointment of successors; and
(E)  all matters relating to the organization and duties of the board of trustees;
(14)  govern the issuance of bonds or notes to replace lost, stolen, or mutilated bonds or notes; and
(15)  relate to any other matter that affects the security or protection of the:
(A)  bonds or notes; or
(B)  bond or note holders.
(b)  A provision authorized by this section that is contained in the resolution or trust indenture is a part of the agreement with the holders of the bonds or notes.
Added by Acts 2005, 79th Leg., Ch. 729 (H.B. 2019), Sec. 1.06, eff. April 1, 2007.