Texas Water Code - Section 20.116. Pledge Of State Faith And Credit; Covenant With Owners Of Bonds
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Texas Laws > Water Code > Texas Water Code - Section 20.116. Pledge Of State Faith And Credit; Covenant With Owners Of Bonds
Section: 20.109 20.110 20.111 20.112 20.113 20.114 20.115 20.116 20.117 26.001 26.014 26.015
§ 20.116. PLEDGE OF STATE FAITH AND CREDIT; COVENANT WITH
OWNERS OF BONDS. (a) The authority's bonds are obligations solely
of the authority and are payable solely from funds of the authority,
and this chapter and the authority's bonds are not and do not create
or constitute a pledge, giving, or lending of the faith or credit or
taxing authority of the state.
(b) Each bond of the authority must include a statement that
the state is not obligated to pay the premium, principal of, or
interest on the authority's bonds and that the faith or credit and
the taxing authority of the state is not pledged, given, or loaned
to those payments.
(c) The state pledges to and agrees with the owners of any
bonds issued in accordance with this chapter that the state will not
limit or alter the rights vested in the authority to fulfill the
terms of any agreements made with the owners of the bonds or in any
way impair the rights and remedies of those owners until the bonds,
together with any premium and interest, interest on any unpaid
premium or installments of interest, and all costs and expenses in
connection with any action or proceeding by or on behalf of those
owners, are fully met and discharged. The authority may include
this pledge and agreement of the state in any agreement with the
owners of bonds.
Added by Acts 1987, 70th Leg., ch. 728, § 1, eff. June 20, 1987.
Last modified: August 11, 2007