Tex.
Spec. Dist. Local Laws Code Section 3851.154
Bonds and Other Obligations; Municipal Approval
(a)
The district may issue by competitive bid or negotiated sale bonds, notes, or other obligations payable wholly or partly from ad valorem taxes or assessments in the manner provided by Subchapter A (Short Title), Chapter 372 (Improvement Districts in Municipalities and Counties), or Subchapter J, Chapter 375 (Municipal Management Districts in General), Local Government Code.(b)
In exercising the district’s borrowing power, the district may issue a bond or other obligation in the form of a bond, note, certificate of participation or other instrument evidencing a proportionate interest in payments to be made by the district, or other type of obligation.(c)
In addition to the sources of money described by Subchapter A (Short Title), Chapter 372 (Improvement Districts in Municipalities and Counties), and Subchapter J, Chapter 375 (Municipal Management Districts in General), Local Government Code, district bonds may be secured and made payable, wholly or partly, by a pledge of any part of the net proceeds the district receives from any other district revenue.(d)
District bonds payable by ad valorem taxes may not be issued unless the bonds and the taxes are approved by:(1)
the governing body of the city; and(2)
a majority of the district voters voting in an election called for that purpose.(e)
The city is not obligated to pay, repay, or guarantee any bonds, notes, or other obligations of the district unless the city dissolves the district under Subchapter E.
Source:
Section 3851.154 — Bonds and Other Obligations; Municipal Approval, https://statutes.capitol.texas.gov/Docs/SD/htm/SD.3851.htm#3851.154 (accessed Jun. 5, 2024).
