ASSUMPTION OR PAYMENT OF PREEXISTING DEBT PROHIBITED
Known as the Development Corporation Act
The act spans §§ 501.001 to 507.202 (255 sections).
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff
A Type A corporation may not:
(1) assume a debt that existed before the date the authorizing municipality authorized the creation of the corporation; or
(2) make an expenditure to pay the principal of or interest on a debt that existed before the date prescribed by Subdivision (1).
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.