Texas Special District Local Laws Code 8506.108 – Sale, Lease, Mortgage, or Other Disposition of Authority Property
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(a) The authority may not:
(1) mortgage or otherwise encumber authority property of any kind, or any interest in authority property; or
(2) acquire any property or interest in property subject to a mortgage or conditional sale.
(b) Subsection (a) does not prevent pledging authority revenue as authorized by this chapter.
Terms Used In Texas Special District Local Laws Code 8506.108
- 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
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) This chapter does not authorize the sale, lease, or other disposition of authority property of any kind, or an interest in authority property, by the authority, by a receiver of any authority property, through a court proceeding, or otherwise.
(d) Notwithstanding Subsection (c), the authority may sell for cash authority property of any kind, or an interest in authority property, if:
(1) the board, by the affirmative vote of six members of the board, determines that the property or interest is not necessary or convenient to the business of the authority and approves the terms of the sale; and
(2) the aggregate value of the properties or interests sold in any year does not exceed $50,000.
(e) It is the intent of the legislature that, except by sale as expressly authorized by this section, authority property or an interest in authority property never come into the ownership or control, directly or indirectly, of any person other than a public authority created under the laws of this state.
(f) Authority property is exempt from forced sale. The sale of authority property under a judgment rendered in a suit is prohibited.