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Texas Water Code - Section 20.116. Pledge Of State Faith And Credit; Covenant With Owners Of Bonds

Legal Research Home > Texas Laws > Water Code > Texas Water Code - Section 20.116. Pledge Of State Faith And Credit; Covenant With Owners Of Bonds

§ 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