Tex. Transp. Code Section 284.042
Use of Bond Proceeds; Lien

(a)

The proceeds of bonds issued under this chapter:

(1)

may be used only to pay the costs of the project described by Section 284.043 (Costs and Expenses); and

(2)

shall be disbursed under the restrictions the bond instrument provides.

(b)

Project operating and maintenance costs to be paid from proceeds of bonds payable in whole or in part from project revenue may include only items expressly defined in the proceedings authorizing the bonds.

(c)

Notwithstanding Subsection (a), bond proceeds that remain after the project costs are paid in full shall be used to pay interest on and retire the bonds, unless otherwise provided in the bond instrument.

(d)

Unless otherwise provided in the bond instrument, if the bond proceeds are not sufficient to pay all the project costs, additional bonds may be issued up to the amount necessary to pay the remaining costs. The additional bonds are considered to be of the same issue as the original bonds and are entitled to payment from the same fund, without preference for the bonds first issued.

(e)

The bondholder or a bond trustee has a lien on the bond proceeds.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.

Source: Section 284.042 — Use of Bond Proceeds; Lien, https://statutes.­capitol.­texas.­gov/Docs/TN/htm/TN.­284.­htm#284.­042 (accessed May 11, 2024).

284.001
Definitions 284.002
Applicability to Certain Counties and Local Government Corporations 284.003
Project Authorized 284.004
Use of County Property 284.005
Conveyance to County 284.006
Federal or State Aid 284.007
Contracts for Historically Underutilized Businesses 284.008
Powers of Commission 284.011
Transfer of Project to Department 284.012
Transfer of Assets 284.013
Conveyance of Ferry Connecting State Highways 284.0031
Other Road, Street, or Highway Projects 284.031
Bonds Authorized 284.032
Tax Bond Election 284.033
Interim Bonds 284.034
Bond Sale to Pay Outstanding Bonds 284.035
Bond Approval and Registration 284.036
Bonds Secured Solely by Revenue 284.037
Revenue Bond Election Not Required 284.038
Revenue Bonds: Ad Valorem Tax for Maintenance and Operation 284.039
Bonds Are Securities 284.040
Effect of Lien 284.041
Refunding Bonds 284.042
Use of Bond Proceeds 284.043
Costs and Expenses 284.044
Depository 284.045
Bonds Tax Free 284.046
Bondholder Rights 284.061
Acquisition of Property 284.062
Ferry 284.063
Contract for Project Construction 284.064
Contract to Operate 284.065
Pooled Projects 284.066
Operating Board 284.067
Projects Extending into Other Counties 284.068
Reconstruction of Closed or Relocated Nontoll Roads, Streets, or Highways 284.069
Tolls and Charges 284.070
Nonpayment of Toll 284.071
Controlled Access to Toll Road 284.072
Promotion of Toll Roads 284.073
Powers and Duties of Receiver 284.074
Tax and Assessment Exemption: Projects 284.201
Applicability of Subchapter 284.202
Order Prohibiting Operation of Motor Vehicle on Toll Project 284.203
Violation of Order 284.204
Administrative Adjudication Hearing Procedure 284.205
Citation or Summons 284.206
Administrative Hearing: Presumption 284.207
Attendance on Hearing 284.208
Decision of Hearing Officer 284.209
Enforcement of Decision 284.210
Appeal of Hearing Officer Decision 284.211
Hearing on Appeal 284.212
Effect of Appeal 284.213
Seizure of Transponders 284.0615
Declaration of Taking by Certain Counties 284.0665
Compensation of Operating Board Members 284.0701
Administrative Costs 284.0702
Prima Facie Evidence 284.0703
Method of Sending Invoice or Notice 284.2031
Civil and Criminal Enforcement: Fine 284.2032
Fine in Certain Counties
Green check means up to date. Up to date

Accessed:
May 11, 2024

§ 284.042’s source at texas​.gov