Section 221.047 - Bond Requirements(a) A bond issued under Section 221.046 is a negotiable instrument within the meaning and for purposes of the Business & Commerce Code.(b) The bond may be: (1) issued registrable as to principal or as to both principal and interest; or(2) made redeemable before maturity.(c) The bond may be:(1) issued in the form, denominations, and manner and under the terms provided by the order or resolution authorizing the issuance of the bond; and(2) sold in the manner, at the price, and under the terms provided by the order or resolution authorizing the issuance of the bond.(d) The bond shall: (1) be executed in accordance with the order or resolution authorizing the issuance of the bond; and(2) bear interest at the rate provided by the order or resolution authorizing the issuance of the bond.(e) The bond may bear interest and may be issued in accordance with:(1) Chapters 1201, 1204, and 1371, Government Code; or(2) Subchapters A-C, Chapter 1207, Government Code.(f) The bond may be additionally secured by a:(1) mortgage or deed of trust on real property that is related to the mitigation bank; or(2) chattel mortgage, lien, or security interest on personal property appurtenant to that real property.(g) The eligible political subdivision may authorize the execution of a trust indenture, mortgage, deed of trust, or other encumbrance to evidence the indebtedness.(h) The eligible political subdivision may pledge to the payment of the bond any part of a grant, a donation, revenue, or income received or to be received from the United States or any other source.Tex. Nat. Res. Code § 221.047
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.361, eff. 9/1/2001.Added by Acts 1997, 75th Leg., ch. 165, Sec. 24.01(a), eff. 9/1/1997.