Tex.
Spec. Dist. Local Laws Code Section 3954.201
Bonds and Other Obligations
(a)
The district may issue, by public or private sale, bonds, notes, or other obligations payable wholly or partly from ad valorem taxes or assessments in the manner provided by Subchapter J (General Obligation and Revenue Bonds), Chapter 375 (Municipal Management Districts in General), Local Government Code.(b)
If the improvements financed by an obligation will be conveyed to or operated and maintained by a municipality or retail utility provider pursuant to an agreement between the district and the municipality or retail utility provider entered into before the issuance of the obligation, the obligation may be issued in the manner provided by Subchapter A (Short Title), Chapter 372 (Improvement Districts in Municipalities and Counties), Local Government Code.(c)
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.(d)
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 money the district receives from improvement revenue, receives under Section 3954.006 (Eligibility for Inclusion in Special Zones)(b), or receives from any other source.(e)
The district may issue bonds, notes, or other obligations to maintain or repair an existing improvement project only if the district obtains written consent from the governing body of the city.
Source:
Section 3954.201 — Bonds and Other Obligations, https://statutes.capitol.texas.gov/Docs/SD/htm/SD.3954.htm#3954.201 (accessed Jun. 5, 2024).
