Sec. 1088.306. SALE OR TRANSFER OF ASSETS AND LIABILITIES. (a) The dissolution of the district and the sale or transfer of the district's assets and liabilities to another person 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.
(b) 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.
(c) 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 entity that serves the district; and
(2) the transferred assets are to be used for the benefit of the district's residents.
(d) A grant from federal funds is an obligation to be repaid in satisfaction.
Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011.
Section: Previous 1088.205 1088.206 1088.207 1088.208 1088.209 1088.251 1088.252 1088.253 1088.301 1088.302 1088.303 1088.304 1088.305 1088.306 1088.307 NextLast modified: September 28, 2016