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Texas Special District Local Laws Code - Section 1008.156. Sale Or Transfer Of Assets And Liabilities

Legal Research Home > Texas Lawyer > Special District Local Laws Code > Texas Special District Local Laws Code - Section 1008.156. Sale Or Transfer Of Assets And Liabilities

§ 1008.156. SALE OR TRANSFER OF ASSETS AND 
LIABILITIES.  (a)  Notwithstanding any other provision of this 
subchapter, the district may not be dissolved unless the board 
provides for the sale or transfer of the district's assets and 
liabilities to another person or entity.
	(b)  The dissolution of the district and the sale or transfer 
of the district's assets or liabilities may not contravene a trust 
indenture or bond resolution relating to the district's outstanding 
bonds.  The dissolution and sale or transfer does not diminish or 
impair the rights of a holder of an outstanding bond, warrant, or 
other obligation of the district.
	(c)  The sale or transfer of the district's assets and 
liabilities must satisfy the debt and bond obligations of the 
district in a manner that protects the interests of the residents of 
the district, including the residents' collective property rights 
in the district's assets.  The district may not transfer or dispose 
of the district's assets except for due compensation unless the 
transfer is made to another governmental agency that serves the 
district and the transferred assets are to be used for the benefit 
of the district's residents.
	(d)  A grant from federal funds is an obligation to be repaid 
in satisfaction.

Added by Acts 2005, 79th Leg., ch. 729, § 1.01, eff. April 1, 
2007.      

Last modified: August 10, 2007