Special District Local Laws Code § 1084.159

If the district lacks money for an authorized obligation, the board must declare an emergency and may borrow on district notes, pledge certain security, and use the funds only for the related purpose.

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Jurisdiction: United States — Texas
Instrument: Code
Version: Undated source snapshot
Language: en
Official source: View official record ↗

borrowing loan maturity security

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Provisions of Special District Local Laws Code § 1084.159

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1084.159
Special District Local Laws Code § 1084.159
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AI-assisted research summary: If the district lacks money for an authorized obligation, the board must declare an emergency and may borrow on district notes, pledge certain security, and use the funds only for the related purpose.

Sec. 1084.159. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY. (a) If money is not available to meet an authorized obligation of the district, the board shall adopt an order declaring an emergency. After the order is adopted, the board may borrow money on district notes at a rate not to exceed 12 percent a year to meet the obligation. (b) To secure the loan, the board may pledge: (1) district revenue that is not pledged to pay the district's bonded indebtedness; (2) a district tax that is to be imposed not later than the first anniversary of the date of the loan and that is not pledged to pay the principal of or interest on district bonds; or (3) district bonds that have been authorized but not sold. (c) A loan for which taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made. (d) The board may spend money obtained from a loan under this section only to meet the obligation that made the loan necessary. The board may spend money obtained from any taxes or bonds used to secure the loan only for the purpose for which the taxes were imposed or the bonds were authorized. Added by Acts 2009, 81st Leg., R.S., Ch. 1139 (H.B. 2619), Sec. 1.01, eff. April 1, 2011. SUBCHAPTER E. BONDS

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Special District Local Laws Code § 1084.159

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