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Tex. Transp. Code § 454.028

OBLIGATION OF TRANSPORTATION SYSTEM NOT MUNICIPAL DEBT

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff

(a) An obligation of a mass transportation system:

(1) is not a debt of the municipality;

(2) is solely a charge on the property, including the pledged revenue, of the encumbered system; and

(3) may not be included in determining the power of the municipality to issue any bonds or notes for any purpose authorized by law.

(b) A municipality may make payments on bonds or notes issued under this chapter out of any other funds that lawfully may be used for that purpose.

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