Sec. 1043.156. AUTHORITY TO BORROW MONEY; SECURITY. (a) If the board declares that money is not available to meet authorized district obligations, the board may:
(1) by majority vote borrow money to satisfy the obligations in an amount not to exceed, at any one time in the aggregate, 10 percent of the annual district operational expenses for the prior fiscal year; and
(2) by unanimous vote borrow additional money if the obligations exceed the amount described by Subdivision (1).
(b) To secure a loan, the board may pledge:
(1) district revenue that is not pledged to pay the district's bonded indebtedness; or
(2) a district tax to be imposed by the district in the next 12-month period that is not pledged to pay the principal of or interest on district bonds.
(c) A loan for which taxes are pledged must mature and be paid not later than the first anniversary of the date the loan is made.
(d) The board may not spend money obtained from a loan under this section for any purpose other than:
(1) the purpose for which the board declared an emergency; and
(2) if district taxes are pledged to pay the loan, the purposes for which the pledged taxes were imposed.
Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.
Last modified: September 28, 2016