Tex. Water Code § 65.504
This is the official text of Tex. Water Code § 65.504, part of Texas’s Water Code — governs water rights and water resource management.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 65.504. ADDITIONAL SECURITY FOR BONDS OR NOTES.
Official statutory text
(a) The bonds or notes, within the discretion of the board, may be additionally secured by a deed of trust or mortgage lien on all or part of the physical properties of the district, and franchises, easements, water rights, and appropriation permits, leases, and contracts and all rights appurtenant to those properties, vesting in the trustee power to sell the property for payment of the indebtedness, power to operate the property, and all other authority necessary for the further security of the bonds or notes.
(b) The trust indenture, regardless of the existence of the deed of trust or mortgage lien on any property, may:
(1) include provisions prescribed by the board for the security of the bonds or notes and the preservation of the trust estate;
(2) make provision for amendment or modification;
(3) condition the right to spend district money or sell district property on approval of a registered professional engineer selected as provided in the trust indenture; and
(4) make provision for investment of funds of the district.
(c) Any purchaser under a sale under the deed of trust or mortgage lien, if one is given, is absolute owner of the property, facilities, and rights purchased and is entitled to maintain and operate them.
(b) The trust indenture, regardless of the existence of the deed of trust or mortgage lien on any property, may:
(1) include provisions prescribed by the board for the security of the bonds or notes and the preservation of the trust estate;
(2) make provision for amendment or modification;
(3) condition the right to spend district money or sell district property on approval of a registered professional engineer selected as provided in the trust indenture; and
(4) make provision for investment of funds of the district.
(c) Any purchaser under a sale under the deed of trust or mortgage lien, if one is given, is absolute owner of the property, facilities, and rights purchased and is entitled to maintain and operate them.
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.