Texas Insurance Code 2203.358 – Source of Payment
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(a) Bonds issued under this subchapter are payable only from:
(1) the surcharge fee established under Section 2203.359; or
(2) other sources the association is authorized to levy and charge and from which the association is authorized to collect in connection with paying any portion of the bonds.
(b) The bonds are obligations solely of the association and do not create a pledge, gift, or loan of the faith, credit, or taxing authority of this state.
Terms Used In Texas Insurance Code 2203.358
- Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
- 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.
(c) Each bond must:
(1) include a statement that the state is not obligated to pay any amount on the bond and that the faith, credit, and taxing authority of this state are not pledged, given, or loaned to those payments; and
(2) state on the bond’s face that the bond:
(A) is payable solely from the revenue pledged for that purpose; and
(B) is not a legal or moral obligation of the state.