Section 303.074 - Use of Proceeds(a) The proceeds of the bonds of a corporation may be used to: (1) finance, refinance, or provide one or more public facilities;(2) maintain reserve funds determined by the sponsor and the corporation to be necessary and appropriate; or(3) pay any costs relating to the issuance or incurrence of bonds by the corporation and the purchase of sponsor obligations by the corporation, including:(A) the cost of: (i) financing charges and interest on the bonds;(ii) financing, legal, accounting, financial advisory, and appraisal fees, expenses, and disbursements;(iii) an insurance policy;(iv) printing, engraving, and reproduction services;(v) the initial and acceptance fees of a trustee, paying agent, bond registrar, or authenticating agent; and(vi) a credit agreement; and(B) reasonable amounts to reimburse the corporation for time spent by its agents or employees with respect to the issuance, incurrence, or purchase.(b) The purchase by the corporation of a sponsor obligation does not extinguish the debt represented by the sponsor obligation.(c) Pending a use described by Subsection (a), the proceeds may be invested in accordance with Section 303.041.Tex. Loc. Gov't. Code § 303.074
Added by Acts 1999, 76th Leg., ch. 227, Sec. 11, eff. 9/1/1999.