Sec. 1002.252. AUTHORITY TO BORROW MONEY; SECURITY. (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.
Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.
Amended by:
Acts 2013, 83rd Leg., R.S., Ch. 826 (S.B. 1861), Sec. 5, eff. June 14, 2013.
Acts 2013, 83rd Leg., R.S., Ch. 1119 (H.B. 3905), Sec. 5, eff. June 14, 2013.
Last modified: September 28, 2016