{"data":{"id":"us-tx/tex.-government-code-1505.057","jurisdiction":"us-tx","citation":"Tex. Government Code § 1505.057","heading":"ENCUMBRANCE AS ADDITIONAL SECURITY.","body":"(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.\n(b) An encumbrance entered into under this section:\n(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\n(2) shall:\n(A) provide for a trustee to enforce foreclosure; and\n(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.\n(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.\nAdded by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.","path":["GOVERNMENT CODE","TITLE 9. PUBLIC SECURITIES","SUBTITLE J. SPECIFIC AUTHORITY FOR MUNICIPALITIES TO ISSUE SECURITIES","CHAPTER 1505. OBLIGATIONS FOR COASTAL MUNICIPALITIES FOR COASTAL MATTERS","SUBCHAPTER B. BONDS FOR NAVIGATIONAL FACILITIES IN CERTAIN COASTAL MUNICIPALITIES"],"source_url":"https://statutes.capitol.texas.gov/Docs/GV/htm/GV.1505.htm#1505.057","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:16Z","sha256":"26f9acb49d93389f4c06b8122cd0b5da3e168953b3a2134195c639005c58a18c","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-government-code-1505.056","next":"us-tx/tex.-government-code-1505.058"},"notice":"GroundRules: Original legal text. Not legal advice."}