Sec. 1038.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) 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.
(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 district residents, including the residents' collective property rights in the district's assets.
(d) The district may not transfer or dispose of the district's assets except for due compensation unless:
(1) the transfer is made to another governmental agency that serves the district; and
(2) the transferred assets are to be used for the benefit of the district's residents.
(e) A grant from federal funds is an obligation to be repaid in satisfaction.
Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.
Section: Previous 1038.206 1038.207 1038.208 1038.209 1038.210 1038.251 1038.252 1038.253 1038.301 1038.302 1038.303 1038.304 1038.305 1038.306 1038.307 NextLast modified: September 28, 2016