Texas Government Code - GOV'T § 1501.213. Segregation of Properties

(a) Notwithstanding Section 1501.212(2), the payment or security of the district's outstanding bonds may not be impaired.

(b) If money is not available at the bank of payment for the district's bonds to pay the principal of or the interest on the bonds as it becomes due, the water board shall segregate from the municipal water and sewer system all district property purchased under this subchapter, including any replacement, renewal, or improvements of that property.

(c) The segregation of property must be accomplished so that the district property:

(d) After segregation, the water board:

(e) For purposes of Subsection (d), the water board is a body corporate and occupies the same position as the district's board of directors.