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Texas Local Government Code - LOC GOV'T § 501.008. Limitation on Financial Obligation

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

(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,  1 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.

1 V.T.C.A., Government Code § 489.251 et seq.
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Cite this article: FindLaw.com - Texas Local Government Code - LOC GOV'T § 501.008. Limitation on Financial Obligation - last updated January 01, 2024 | https://codes.findlaw.com/tx/local-government-code/loc-gov-t-sect-501-008/

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