(a) If funds are not available to pay the principal of or interest on bonds issued
by the district or to pay other obligations of the district, the board may declare
an emergency and may issue negotiable bond anticipation notes to borrow the money
needed. The bond anticipation notes may bear interest at a rate that does not exceed the
maximum rate provided by Chapter 1204, Government Code, and must mature within one
year after their date of issuance.
(b) Bond anticipation notes may also be issued for any purpose for which bonds of
the district have been voted or to refund previously issued bond anticipation notes.
(c) Bond anticipation notes issued under this section must be authorized by resolution
of the board, subject to approval by the commissioners court under Section 324.045, and must be executed by the president of the board and attested by the secretary
of the board.
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