Texas § 1505.057 ENCUMBRANCE AS ADDITIONAL SECURITY.

Texas Statutes

§ 1505.057 — ENCUMBRANCE AS ADDITIONAL SECURITY.

Texas § 1505.057

Code GVGovernment Code

This text of Texas § 1505.057 (ENCUMBRANCE AS ADDITIONAL SECURITY.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Government Code Code Ann. § 1505.057 (2026).

Text

Sec. 1505.057. ENCUMBRANCE AS ADDITIONAL SECURITY.

(a)As additional security for the payment of the principal of and interest on bonds issued under this subchapter, a municipality may encumber any part or all of a project undertaken with funds derived from the bonds.

(b)An encumbrance entered into under this section:

(1)may provide for a grant, to a purchaser under sale or foreclosure, of a franchise to operate the encumbered project for a term not to exceed 20 years from the date of purchase, subject to all laws regulating the same then in force; and

(2)shall:

(A)provide for a trustee to enforce foreclosure; and

(B)provide the municipality with the option at any five-year period within the 20-year term after purchase to repurchase a project, other than reclaimed land acquired by an

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Sec. 1505.057. ENCUMBRANCE AS ADDITIONAL SECURITY. (a) As additional security for the payment of the principal of and interest on bonds issued under this subchapter, a municipality may encumber any part or all of a project undertaken with funds derived from the bonds.
(b) An encumbrance entered into under this section:
(1) may provide for a grant, to a purchaser under sale or foreclosure, of a franchise to operate the encumbered project for a term not to exceed 20 years from the date of purchase, subject to all laws regulating the same then in force; and
(2) shall:
(A) provide for a trustee to enforce foreclosure; and
(B) provide the municipality with the option at any five-year period within the 20-year term after purchase to repurchase a project, other than reclaimed land acquired by an individual purchaser, under reasonable terms and at a reasonable price stated in the encumbrance.
(c) Subject to Section 1505.076 , the governing body of the municipality shall manage and control a project while it is encumbered under this section.