Texas Transportation Code 451.611 – Determination of Total Amount of Financial Obligations of Withdrawn Unit
(a) The net financial obligation of a withdrawn unit of election to the authority is an amount equal to:
(1) the gross financial obligations of the unit, which is the sum of:
(A) the unit’s apportioned share of the authority’s outstanding obligations; and
(B) the amount, not computed in Subdivision (1)(A), that is necessary and appropriate to allocate to the unit because of financial obligations of the authority that specifically relate to the unit; minus
(2) the unit’s apportioned share of the unencumbered assets of the authority that consist of cash, cash deposits, certificates of deposit, and bonds, stocks, and other negotiable securities.
(b) An authority’s outstanding obligations under Subsection (a)(1)(A) is the sum of:
(1) the obligations of the authority authorized in the budget of, and contracted for by, the authority;
(2) outstanding contractual obligations for capital or other expenditures, including expenditures for a subsequent year, the payment of which is not made or provided for from the proceeds of notes, bonds, or other obligations;
(3) payments due or to become due in a subsequent year on notes, bonds, or other securities or obligations for debt issued by the authority;
(4) the amount required by the authority to be reserved for all years to comply with financial covenants made with lenders, note or bond holders, or other creditors or contractors; and
(5) the amount necessary for the full and timely payment of the obligations of the authority, to avoid a default or impairment of those obligations, including contingent liabilities.
Terms Used In Texas Transportation Code 451.611
- 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.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) The apportioned share of a unit’s obligation or assets is the amount of the obligation or assets times a fraction, the numerator of which is the number of inhabitants of the withdrawing unit of election and the denominator of which is the number of inhabitants of the authority, including the number of inhabitants of the unit.
(d) The board shall determine the amount of each component of the computations required under this section, including the components of the unit’s apportioned share, as of the effective date of withdrawal. The number of inhabitants shall be determined according to the most recent and available applicable data of an agency of the United States.