1. (a) An issuer may, in lieu of making a deposit with the comptroller under Subchapter B, deposit an amount of money sufficient to provide for the payment or redemption of the obligations, including assumed obligations, to be refunded or to be paid or redeemed in whole or in part without issuing refunding bonds, directly with:

   1. (1) a paying agent for any of the obligations to be refunded, paid, or redeemed;
   2. (2) the trustee under a trust indenture, deed of trust, or similar instrument providing security for the obligations to be refunded, paid, or redeemed; or

   3. (3) a trust company or commercial bank other than one described by Subdivision (1) or (2) that:

      1. (A) does not act as a depository for the issuer; and
      2. (B) is named in the proceedings of the issuer authorizing execution of an agreement under Section 1207.062.
2. (b) An issuer may make a deposit under this section from any source, including the proceeds from the sale of the refunding bonds.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

Amended by Acts 2001, 77th Leg., ch. 769, Sec. 5, eff. Sept. 1, 2001.