Texas Government Code 1371.103 – Security for Obligation
(a) An obligation must be secured solely by:
(1) the proceeds from the sale of other obligations;
(2) the proceeds from the sale of revenue bonds payable from the revenue to be received from a public works or a specified user of a public works;
(3) any revenue that the issuer is authorized by the constitution, a statute, or the charter of a home-rule municipality to pledge to the payment of an obligation;
(4) a credit agreement; or
(5) any combination of those sources.
(b) A governing body may secure an obligation and pay the cost of a credit agreement executed and delivered in connection with the financing of a project cost with:
(1) the sources permitted by this chapter; and
(2) ad valorem taxes to the extent the project cost relates to an eligible project financed or to be financed with obligations payable from ad valorem taxes.
Terms Used In Texas Government Code 1371.103
- 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.
- Statute: A law passed by a legislature.