Texas Special District Local Laws Code 3986.0504 – Authority to Borrow Money and to Issue Bonds and Other Obligations
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(a) The district may borrow money on terms determined by the board.
(b) The district may issue bonds, notes, or other obligations payable wholly or partly from:
(1) impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources of money, to pay for any authorized district purpose;
(2) ad valorem taxes for a purpose authorized under § 3986.0502; and
(3) assessments only to finance a major public infrastructure improvement project that serves a majority of the district.
Terms Used In Texas Special District Local Laws Code 3986.0504
- Contract: A legal written agreement that becomes binding when signed.
- 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) The district may issue, by public or private sale, bonds, notes, or other obligations payable wholly or partly from assessments in the manner provided by Subchapter A, Chapter 372, Local Government Code, if the improvement financed by an obligation issued under this section will be conveyed to or operated and maintained by a municipality or other retail utility provider pursuant to an agreement with the district entered into before the issuance of the obligation.