Texas Insurance Code 2211.208 – Source of Payment
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(a) Public securities issued under this subchapter are payable only from:
(1) the service fee established under § 2211.209; or
(2) other amounts the association is authorized to levy, charge, and collect.
(b) The public securities 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 2211.208
- 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 public security must:
(1) include a statement that the state is not obligated to pay any amount on the security 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 security’s face that the security:
(A) is payable solely from the revenue pledged for that purpose; and
(B) is not a legal or moral obligation of the state.