Tex. Spec. Dist. Local Laws Code Section 1098.161
Authority to Borrow Money in Emergency; Security

(a)

The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board determines that:

(1)

money is not available to meet a lawful obligation of the district; and

(2)

an emergency exists.

(b)

To secure a loan, the board may pledge:

(1)

district revenue that is not pledged to pay the district’s bond indebtedness;

(2)

tax revenue to be collected by the district during the 12-month period following the date of the pledge that has not been 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 tax revenue or bonds are pledged must mature not later than the third anniversary of the date the loan is made. A loan for which other district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made.

(d)

The board may not spend loan proceeds obtained under this section for a purpose other than:

(1)

the purpose for which the board determined the emergency existed; and

(2)

if tax revenue or bonds are pledged to pay the loan, the purpose for which the taxes were imposed or the bonds were authorized.
Added by Acts 2011, 82nd Leg., R.S., Ch. 70 (S.B. 1147), Sec. 1.01, eff. April 1, 2013.

Source: Section 1098.161 — Authority to Borrow Money in Emergency; Security, https://statutes.­capitol.­texas.­gov/Docs/SD/htm/SD.­1098.­htm#1098.­161 (accessed Jun. 5, 2024).

1098.001
Definitions 1098.002
Authority for Operation 1098.003
Political Subdivision 1098.004
District Territory 1098.005
Correction of Invalid Procedures 1098.006
District Support and Maintenance Not State Obligation 1098.007
Restriction on State Financial Assistance 1098.051
Board Election 1098.052
Notice of Election 1098.053
Qualifications for Office 1098.054
Board Vacancy 1098.055
Officers 1098.056
Compensation 1098.057
Voting Requirement 1098.058
District Administrator 1098.059
General Duties of District Administrator 1098.060
Staff and Employees 1098.061
Educational Programs 1098.062
Retirement Benefits 1098.063
Maintenance of Records 1098.064
Seal 1098.101
District Responsibility 1098.102
Restriction on Taxation and Debt 1098.103
Management and Control of District 1098.104
Hospital System 1098.105
Rules 1098.106
Purchasing and Accounting Procedures 1098.107
District Property, Facilities, and Equipment 1098.108
Eminent Domain 1098.109
Gifts and Endowments 1098.110
Bidding Requirements 1098.111
Operating and Management Contracts 1098.112
Contracts for Health Care 1098.113
Payment for Treatment 1098.114
Authority to Sue and Be Sued 1098.151
Budget 1098.152
Notice 1098.153
Amendments to Budget 1098.154
Spending Restrictions 1098.155
Fiscal Year 1098.156
Annual Audit 1098.157
Inspection of Annual Audit and District Records 1098.158
Financial Report 1098.159
Depository or Treasurer 1098.160
General Authority to Borrow Money 1098.161
Authority to Borrow Money in Emergency 1098.201
General Obligation Bonds 1098.202
Tax to Pay General Obligation Bonds 1098.203
General Obligation Bond Election 1098.204
Maturity of General Obligation Bonds 1098.205
Execution of General Obligation Bonds 1098.206
Revenue Bonds 1098.251
Imposition of Ad Valorem Tax 1098.252
Tax Rate 1098.253
Tax Assessor-collector 1098.301
Dissolution 1098.302
Notice of Election 1098.303
Ballot 1098.304
Election Results 1098.305
Transfer, Sale, or Administration of Assets 1098.306
Sale or Transfer of Assets and Liabilities 1098.307
Imposition of Tax and Return of Surplus Taxes 1098.308
Report
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Accessed:
Jun. 5, 2024

§ 1098.161’s source at texas​.gov