Texas Water Code 49.153 – Revenue Notes
(a) The board, without the necessity of an election, may borrow money on negotiable or nonnegotiable notes of the district to be paid solely from the revenues derived from the ownership of all or any designated part of the district’s works, plants, improvements, facilities, or equipment after deduction of the reasonable cost of maintaining and operating the facilities.
(b) The notes may be first or subordinate lien notes within the discretion of the board, but no obligation may ever be a charge on the property of the district or on taxes levied or collected by the district but shall be solely a charge on the revenues pledged for the payment of the obligation. No part of the obligation may ever be paid from taxes levied or collected by the district.
Terms Used In Texas Water Code 49.153
- Board: means the governing body of a district. See Texas Water Code 49.001
- Commission: means the Texas Natural Resource Conservation Commission. See Texas Water Code 49.001
- District: means any district or authority created by authority of either Sections Texas Water Code 49.001
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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.
- Population: means the population shown by the most recent federal decennial census. See Texas Government Code 311.005
- Property: means real and personal property. See Texas Government Code 311.005
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) Except as provided by Subsection (e), a district may not execute a note for a term longer than three years unless the commission issues an order approving the note.
(d) This section does not apply to special water authorities.
(e) Subsection (c) does not apply to:
(1) a note issued to and approved by:
(A) the Farmers Home Administration;
(B) the United States Department of Agriculture;
(C) the Texas Water Development Board;
(D) the North American Development Bank; or
(E) a federally chartered instrumentality of the United States authorized under 12 U.S.C. § 2128(f) to provide financing for water and waste disposal facilities, provided that the district that executes the note is located wholly in a county that:
(i) does not contain a municipality that has a population of more than 750,000; and
(ii) is not adjacent to a county described by Subparagraph (i); or
(2) a district described by § 49.181(h).