Texas Government Code 1505.055 – Authority to Borrow From United States
Current as of: 2024 | Check for updates
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(a) To construct and maintain a project, a municipality may borrow money from the United States or an agency of the United States created for the purpose of making such a loan.
(b) To obtain the loan, a municipality may encumber:
(1) the property and facilities of the project acquired or to be acquired;
(2) the revenue and income from the operation of the project acquired or to be acquired; and
(3) anything relating to the project acquired or to be acquired.
Terms Used In Texas Government Code 1505.055
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Property: means real and personal property. See Texas Government Code 311.005
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) As additional security for the loan, the municipality may:
(1) encumber the net revenue and income from the operation of all projects; and
(2) provide in the encumbrance for a grant, to a purchaser under sale or foreclosure, of a franchise to operate the encumbered project for a term not to exceed 20 years from the date of purchase, subject to all laws regulating the same then in force.