Sec. 383.031.  INVESTMENT AND USE OF PROCEEDS.  (a)  The governing body may set aside amounts from the proceeds of the sale of bonds for payment into an interest and sinking fund and reserve funds and may provide for this in the resolution or a security agreement.  All expenses of issuing and selling the bonds must be paid from the proceeds of the sale of the bonds.
(b)  Proceeds from the sale of bonds may be invested in:
(1)  direct or indirect obligations of the United States government or an agency of the United States government that mature in a manner specified by the resolution or a security agreement;  or
(2)  certificates of deposit of a bank or trust company if the deposits are secured by obligations described by Subdivision (1).
(c)  A bank or trust company with trust powers may be designated as depository for proceeds of bonds or of lease or other contract revenue.  The bank or trust company shall furnish indemnifying bonds or pledge securities as required by the issuer to secure the deposits.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.