Sec. 362.037. TRUST AS SECURITY. (a) The issuer's governing body may additionally secure bonds, including refunding bonds, by a trust indenture under which the trustee may be a bank that has trust powers and that is located inside or outside the state. (b) Regardless of any mortgage, deed of trust lien, or security interest under Section 362.038 , the trust indenture may: (1) contain any provision that the governing body prescribes for the security of the bonds and the preservation of the trust estate; (2) provide for amendment or modification of the trust indenture; (3) condition the right to spend the issuer's money or sell an issuer's system as provided by the trust indenture; (4) provide in other manners for protection and enforcement of bondholders' rights and remedies as is reasonable and proper; and (5) provide for the issuance of replacement bonds for lost, stolen, or mutilated bonds.
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