Section 1477.064 - Rates and Charges(a) If bonds issued under this subchapter are secured solely by a pledge of net revenue of the project, the commissioners court shall contract for and impose rates and charges for water supplied by the project that will be sufficient to: (1) operate and maintain the project;(2) pay when due the principal of and interest on the bonds; and(3) establish any reserves provided in the order authorizing the issuance of the bonds.(b) A bond secured solely by a pledge of net revenue:(1) is not a debt of the county issuing the bond;(2) may be a charge only on pledged revenue of a project;(3) may not be included in determining the power of the county to issue bonds or incur other debt for any purpose authorized by law; and(4) must contain the following provision: "The holder of this bond is not entitled to demand payment of this obligation out of any money raised by taxation."Tex. Gov't. Code § 1477.064
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. 9/1/1999.