Sec. 1477.064. RATES AND CHARGES. (a) If bonds issued under this subchapter are secured solely by a pledge of net revenue of the project, the commissioners court shall contract for and impose rates and charges for water supplied by the project that will be sufficient to:
(1) operate and maintain the project;
(2) pay when due the principal of and interest on the bonds; and
(3) establish any reserves provided in the order authorizing the issuance of the bonds.
(b) A bond secured solely by a pledge of net revenue:
(1) is not a debt of the county issuing the bond;
(2) may be a charge only on pledged revenue of a project;
(3) may not be included in determining the power of the county to issue bonds or incur other debt for any purpose authorized by law; and
(4) must contain the following provision: "The holder of this bond is not entitled to demand payment of this obligation out of any money raised by taxation."
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.
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