Texas Special District Local Laws Code 3831.160 – Obligations
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(a) The district may issue obligations, including revenue bonds, to pay the costs of a project located inside or outside the boundaries of the district. The proceeds of bonds or other obligations that are payable wholly or partly from ad valorem taxes may not be used for a project located outside the district.
(b) In exercising the district’s borrowing power, the district may issue an obligation in the form of a bond, note, certificate of participation or other instrument evidencing a proportionate interest in payments to be made by the district, or other type of obligation.
Terms Used In Texas Special District Local Laws Code 3831.160
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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.
- Property: means real and personal property. See Texas Government Code 311.005
(c) Revenue bonds or other district obligations may be payable from and secured by:
(1) revenue derived from the district’s operations, including district projects;
(2) proceeds of a grant or other funds received by the district;
(3) revenue derived from a lease or contract entered into by the district; or
(4) assessments collected by the district.
(d) Revenue bonds or other district obligations may be secured by a mortgage or deed of trust lien on the district’s interest in a project or property, including a fee title or a leasehold interest.
(e) The district may issue general obligation bonds if general obligation bonds are authorized by an election held under Subchapter F.
(f) For purposes of this chapter, the district:
(1) is an issuer under Chapter 1371, Government Code, and may issue bonds or obligations under that chapter; and
(2) may issue refunding bonds or obligations under Chapter 1207, Government Code.
(g) Except for water, sewer, or drainage projects financed by taxes imposed by the district, the district may issue bonds or other obligations and pursue projects without an order of the Texas Commission on Environmental Quality under § 49.181(a), Water Code.