Sec. 362.037. TRUST AS SECURITY. (a) The issuer's governing body may additionally secure bonds, including refunding bonds, by a trust indenture under which the trustee may be a bank that has trust powers and that is located inside or outside the state.
(b) Regardless of any mortgage, deed of trust lien, or security interest under Section 362.038, the trust indenture may:
(1) contain any provision that the governing body prescribes for the security of the bonds and the preservation of the trust estate;
(2) provide for amendment or modification of the trust indenture;
(3) condition the right to spend the issuer's money or sell an issuer's system as provided by the trust indenture;
(4) provide in other manners for protection and enforcement of bondholders' rights and remedies as is reasonable and proper; and
(5) provide for the issuance of replacement bonds for lost, stolen, or mutilated bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
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