(a) The board may enter into, under terms to which the board agrees, an agreement with the purchaser of an obligation issued under this chapter to:(1) keep all the improvements and facilities, the revenue of which is pledged to the payment of the obligation, insured with insurers of good standing against loss or damage by fire, water or flood, or another hazard that private companies that operate similar property customarily cover by insurance; and(2) carry with one or more insurers of good standing the insurance covering the use and occupancy of the property as is customarily carried by private companies that operate similar property.(b) The cost of the insurance shall be budgeted as a maintenance and operation expense.(c) The insurance shall be carried for the benefit of the holder of the obligation. Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.