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Tex. Spec. Dist. Local Laws Code § 1002.252

AUTHORITY TO BORROW MONEY; SECURITY

Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff

(a) The board may borrow money for district obligations.

(b) To secure a loan or line of credit, the board may pledge:

(1) revenue of the district that is not pledged to pay the district's bonded indebtedness;

(2) taxes to be imposed by the district in the next 12-month period that are not pledged to pay the principal of or interest on district bonds; or

(3) district bonds that have been authorized but not sold.

(c) A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date on which the loan is made. A loan for which district revenues are pledged must mature not later than the fifth anniversary of the date on which the loan is made.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.