(a) The district may not be dissolved unless the board provides for the sale or transfer of the district’s assets and liabilities to another person.
(b) The dissolution of the district and the sale or transfer of the district’s assets and liabilities may not:
(1) contravene a trust indenture or bond resolution relating to the district’s outstanding bonds; or
(2) diminish or impair the rights of the holders of any outstanding bonds, warrants, or other obligations of the district.

Terms Used In Texas Special District Local Laws Code 1043.305

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • 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.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
  • Property: means real and personal property. See Texas Government Code 311.005

(c) 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.
(d) 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 agency that serves the district; and
(2) the transferred assets are to be used for the benefit of the district’s residents.
(e) A grant from federal funds is an obligation to be repaid in satisfaction.

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