(a) The board may borrow money at a rate of interest the board determines is appropriate.
(b) To secure a loan, the board may pledge:
(1) district revenue that is not pledged to pay the district’s bonded indebtedness; or
(2) property acquired with the loan proceeds that is not pledged to pay the district’s bonded indebtedness.

Terms Used In Texas Special District Local Laws Code 1050.156


(c) A loan authorized by this section must mature not later than the fifth anniversary of the date the loan is made.