(a) A bond issued under this subchapter:
(1) is not a debt of the municipality;
(2) may be a charge only on the revenue pledged for the payment of the bond; and
(3) may not be included in determining the power of the municipality to issue bonds payable from taxation.
(b) A bond issued under this subchapter must contain on its face the following provision: “The holder of this obligation is not entitled to demand payment of this obligation out of any money raised by taxation.”

Terms Used In Texas Government Code 1506.004

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.