(a) The district may issue any type of bond, including an anticipation note or refunding bond, for any district purpose. A bond may be issued under Chapter 1371, Government Code.(b) When authorizing the issuance of a bond, the district may also authorize the later issuance of a parity or subordinate lien bond.(c) A district bond must: (1) mature not later than 40 years after its date of issuance; and(2) state on its face that the bond is not an obligation of the state.(d) A district bond may be payable from or secured by:(1) any source of money, including district revenue, loans, or assessments; or(2) a lien, pledge, mortgage, or other security interest on district revenue or property.(e) The district may use bond proceeds for any purpose, including to pay:(1) into a reserve fund for debt service;(2) for the acquisition, design, construction, repair, maintenance, or replacement of property, including buildings and equipment;(3) administrative and operating expenses;(4) all expenses incurred or that will be incurred in the issuance, sale, and delivery of the bonds;(5) the principal of and interest on bonds; or(6) for the operation of an agricultural enterprise.(f) The district may contract with a bondholder to impose an assessment to pay for the operation of an agricultural enterprise.Tex. Agric. Code § 60.103
Added by Acts 2001, 77th Leg., ch. 1393, Sec. 1, eff. 6/16/2001.