Section 454.025 - Encumbrance of Transportation System(a) To secure the payment of bonds or notes issued under this chapter, a municipality may encumber:(1) all or any part of the mass transportation system;(2) the property of the system, including a bus or other vehicle, machinery, and equipment of any kind used in the operation of the system;(3) the revenue of the system;(4) the franchise of the system; or(5) any other thing relating to the system that is acquired or is to be acquired.(b) A municipality may: (1) encumber separately any property, including a bus or other vehicle, machinery, or equipment of any kind; or(2) acquire, hold, use, or contract for any property, including a bus or other vehicle, machinery, or equipment of any kind, under a lease arrangement, chattel mortgage, or conditional sale, including an equipment trust transaction.(c) This chapter does not prohibit a municipality from encumbering a transportation system for the purposes of purchasing, building, mortgaging, extending, or repairing, or reconstructing another system and purchasing necessary property in connection with the system.Tex. Transp. Code § 454.025
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.