Sec. 60.103.  BONDS.  (a)  The district may issue any type of bond, including an anticipation note or refunding bond, for any district purpose.  A bond may be issued under Chapter 1371, Government Code.
(b)  When authorizing the issuance of a bond, the district may also authorize the later issuance of a parity or subordinate lien bond.
(c)  A district bond must:
(1)  mature not later than 40 years after its date of issuance;  and
(2)  state on its face that the bond is not an obligation of the state.
(d)  A district bond may be payable from or secured by:
(1)  any source of money, including district revenue, loans, or assessments;  or
(2)  a lien, pledge, mortgage, or other security interest on district revenue or property.
(e)  The district may use bond proceeds for any purpose, including to pay:
(1)  into a reserve fund for debt service;
(2)  for the acquisition, design, construction, repair, maintenance, or replacement of property, including buildings and equipment;
(3)  administrative and operating expenses;
(4)  all expenses incurred or that will be incurred in the issuance, sale, and delivery of the bonds;
(5)  the principal of and interest on bonds;  or
(6)  for the operation of an agricultural enterprise.
(f)  The district may contract with a bondholder to impose an assessment to pay for the operation of an agricultural enterprise.
Added by Acts 2001, 77th Leg., ch. 1393, Sec. 1, eff. June 16, 2001.