General and Special Laws of The State of Texas Passed By The Second Called Session of the Sixty-Eighth Legislature and the Regular Session of the Sixty-Ninth Legislature Page: 87
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68th LEGIS-2nd CALLED SESSION
SECTION 55. PROVISIONS OF BONDS. (a) In the orders or resolutions authorizing the
issuance of bonds, including refunding bonds, the board may provide for the flow of funds, the
establishment and maintenance of the interest and sinking fund, the reserve fund, and other
funds and may make additional covenants with respect to the bonds and the pledged fees.
(b) The orders or resolutions of the board authorizing the issuance of bonds may also prohibit
the further issuance of bonds or other obligations payable from the pledged fees or may reserve
the right to issue additional bonds to be secured by a pledge of and payable from the fees on a
parity with or subordinate to the pledge in support of the bonds being issued.
(c) The orders or resolutions of the board issuing bonds may contain other provisions and
covenants as the board may determine.
(d) The board may adopt and have executed any other proceedings or instruments necessary
and convenient in connection with the issuance of bonds.
SECTION 56. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY COMP-
TROLLER. (a) Bonds issued by the district and the records relating to their issuance must be
submitted to the attorney general for examination.
(b) If the attorney general finds that the bonds have been authorized in accordance with law,
he shall approve them, and they shall be registered by the comptroller of public accounts.
(c) After the approval and registration of bonds, the bonds are incontestable in any court or
other forum for any reason and are valid and binding obligations in accordance with their terms
for all purposes.
SECTION 57. REFUNDING BONDS. Refunding bonds may be issued for the purposes
and in the manner provided by general law including Chapter 503, Acts of the 54th Legislature,
Regular Session, 1955, as amended (Article 717k, Vernon's Texas Civil Statutes), and Chapter
784, Acts of the 61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
SECTION 58. BONDS AS INVESTMENTS. District bonds are legal and authorized
(2) savings banks;
(3) trust companies;
(4) savings and loan associations;
(5) insurance companies;
(8) guardians; and
(9) sinking funds of cities, counties, school districts, and other political subdivisions of the
state and other public funds of the state and its agencies, including the permanent school fund.
SECTION 59. BONDS AS SECURITY FOR DEPOSITS. District bonds are eligible to
secure deposits of public funds of the state and cities, counties, school districts, and other
political subdivisions of the state. The bonds are lawful and sufficient security for deposits to the
extent of their value when accompanied by all unmatured coupons.
SECTION 60. MANDAMUS BY BONDHOLDERS. In addition to all other rights and
remedies provided by the laws of the state, in the event the district defaults in the payment of
principal, interest, or redemption price on its bonds when due or in the event it fails to make
payments into any fund or funds created in the orders or resolutions authorizing the issuance of
the bonds or defaults in the observation or performance of any other covenants, conditions, or
obligations set forth in the orders or resolutions authorizing the issuance of its bonds, the owners
of any of the bonds shall be entitled to a writ of mandamus issued by a court of competent
jurisdiction compelling and requiring the district and its officials to observe and perform the
covenants, obligations, or conditions prescribed in the orders or resolutions authorizing the
issuance of the district's bonds.
SECTION 61. APPLICATION OF OTHER LAWS. Bonds of the district are considered
bonds under Chapter 845, Acts of the 67th Legislature, Regular Session, 1981, as amended
(Article 717k-6, Vernon's Texas Civil Statutes), and that law applies to district bonds.
SECTION 62. USE OF BOND PROCEEDS. A district may use bond proceeds to
construct, acquire, or improve facilities, to pay any expenses related to those facilities, to pay or
establish a reasonable reserve to pay not more than three years' interest on the bonds and notes
of the district, and to pay expenses related to issuance and sale of bonds as provided by the bond
orders or resolutions.
CH 13, SEC 62
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Texas. Legislature. General and Special Laws of The State of Texas Passed By The Second Called Session of the Sixty-Eighth Legislature and the Regular Session of the Sixty-Ninth Legislature, legislative document, 1985; [Austin, Texas]. (https://texashistory.unt.edu/ark:/67531/metapth221803/m1/91/: accessed May 19, 2019), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.