The Laws of Texas, 1934-1935 [Volume 29] Page: 22 of 2,086
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12 GENERAL AND SPECIAL LAWS.
terest and sinking fund account, reasonably and prudently to
be anticipated by the board of directors of any such district,
will be sufficient to pay principal of and interest on the bonds
becoming due on the semi-annual interest payment date next
succeeding. Provided, nevertheless, that when moneys of the
maintenance fund are so used to prevent or to cure defaults in
the payment of the principal of or interest on the bonds, the
amount so used shall be repaid into said maintenance fund from
the first available proceeds of the taxes levied pursuant to Section
2 of this Act.
SEC. 4. If the government of the United States or a lending
agency thereof, as a condition precedent to lending money
to or purchasing bonds of any district under the provisions
hereof, shall require such district to retire its existing bonded
indebtedness or to subordinate its existing bonded indebtedness
in such manner that the loan made or the bonds purchased by
the Government or such lending agency shall have a claim on
the proceeds of all taxes collected by said district prior and
superior to the claims of all or part of such existing bonded
indebtedness, said district is hereby empowered to enter into
such agreement or agreements with the government or lending
agency thereof and with the holder or holders of such existing
indebtedness as may be necessary or appropriate to accomplish
such purpose. Such agreement may provide for the deposit
or escrow of the bonds so subordinated with a trustee, or
may provide for stamping on such subordinated bonds and
coupons an appropriate legend, or may provide for the replacement
of such subordinated bonds with refunding bonds containing
recitals appropriate to such subordination, and if refunding
bonds are so issued such bonds may be issued without
an election, and need not correspond as to interest rate, maturity
and other details with the bonds refunded.
If the holder or holders of part of such existing bonded indebtedness
of said district are unwilling to enter into an agreement
of the nature hereinabove outlined, but are willing to
enter into an agreement with said district under the terms of
which all or part of the uncollected taxes theretofore levied by
said district for the payment of all or part of the outstanding
bonded indebtedness of said district shall, when collected, be
paid into a special interest and sinking fund created for the
sole purpose of paying interest on and principal of the bonds
held by such holder or holders, said district is hereby empowered
to enter into such agreement. If such agreement is
made no moratorium dr tax payment extension law and no
statute of limitations now or hereafter applicable to the payment
of taxes shall ever apply to the collection of the taxes so
provided to be paid into such special interest and sinking fund.
SEC. 5. Except as herein otherwise provided, the General
Laws relative to bonds of water control and improvement districts
shall apply to the issuance, approval and certification, the
registration, the sale and payment of all bonds of any such district
issued and sold to the Government of the United States,
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Gammel, Hans Peter Mareus Neilsen. The Laws of Texas, 1934-1935 [Volume 29], book, 1935; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth17292/m1/22/: accessed April 20, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; .