Sec. 504.104. ASSUMPTION OR PAYMENT OF PREEXISTING DEBT PROHIBITED. A Type A corporation may not:
(1) assume a debt that existed before the date the authorizing municipality authorized the creation of the corporation; or
(2) make an expenditure to pay the principal of or interest on a debt that existed before the date prescribed by Subdivision (1).
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.
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