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Texas Government Code - GOV'T § 1373.006. Security for Obligation

Current as of January 01, 2024 | Updated by Findlaw Staff

(a) An obligation may be secured by:

(1) the proceeds from the sale of other obligations or indebtedness of the issuer, including proceeds from the sale of revenue bonds payable from the revenue to be received from an eligible project or a specified user of an eligible project;

(2) subject to Subsection (d), any revenue that the issuer is authorized by the constitution, a statute, or the charter of a home-rule municipality to pledge or pay any kind of general or special indebtedness by or from those revenues;

(3) water supply contracts or water treatment contracts or other similar contracts or the revenue received from those contracts;  or

(4) any combination of the sources described by this subsection.

(b) The governing body of an issuer may secure an obligation and pay the cost of a contract or other agreement executed and delivered in connection with the financing of an eligible project with a pledge of the sources permitted by this chapter.

(c) Notwithstanding any other law, if an issuer secures an obligation with contracts or the revenue from those contracts, the term of the contracts may not be less than the final maturity or term of such obligations pursuant to Section 1373.008.

(d) An obligation may not be secured wholly or partly by a pledge of ad valorem taxes.

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Cite this article: FindLaw.com - Texas Government Code - GOV'T § 1373.006. Security for Obligation - last updated January 01, 2024 | https://codes.findlaw.com/tx/government-code/gov-t-sect-1373-006/

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