Tex. Loc. Gov't Code § 501.008

Current with legislation from the 2023 Regular and Special Sessions signed by the Governor as of November 21, 2023.

Section 501.008 - Limitation on Financial Obligation

(a) Except as provided by Subsection (b), a corporation may not incur a financial obligation that cannot be paid from:

(1) bond proceeds;

(2) revenue realized from the lease or sale of a project;

(3) revenue realized from a loan made by the corporation to wholly or partly finance or refinance a project; or

(4) money granted under a contract with a municipality under Section 380.002.

(b) A Type A or Type B corporation may obtain a loan from the Texas small and rural community success fund program under Subchapter E, Chapter 489, Government Code, for eligible projects as authorized by this subtitle. To secure the loan, the Type A or Type B corporation may pledge revenue from the sales and use tax imposed by the corporation's authorizing municipality under Chapter 504 or 505, as applicable, for the benefit of the corporation.

Tex. Loc. Gov't. Code § 501.008

Amended by Acts 2021, Texas Acts of the 87th Leg. - Regular Session, ch. 947,Sec. 2, eff. 6/18/2021.

Added by Acts 2007, 80th Leg., R.S., Ch. 885, Sec. 3.01, eff. 4/1/2009.