Texas Government Code 1232.202 – Contracts Contingent On Legislative Appropriations
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(a) Each lease or installment sale contract entered into under this chapter is contingent on the legislature’s appropriation of sufficient funds.
(b) The board may act as necessary to ensure that the payment of the principal of and interest on obligations is continued without interruption if:
(1) sufficient appropriated funds are unavailable;
(2) the commission or another state agency fails to pay a rental or installment; or
(3) the commission or another state agency fails to renew a lease contract.
Terms Used In Texas Government Code 1232.202
- Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
- Contract: A legal written agreement that becomes binding when signed.
- 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
(c) Permissible actions under Subsection (b) include:
(1) the re-leasing or subleasing of buildings or equipment to any entity; and
(2) the repossession and resale of equipment to any entity.