(a) A public security issued or an obligation incurred under this chapter:
(1) is not a debt of the municipality;
(2) may be a charge only on the encumbered utility system, park, or pool; and
(3) may not be included in determining the municipality’s power to issue public securities for any purpose authorized by law.
(b) Each public security or other evidence of indebtedness issued or included under this chapter must contain the following provision: “The holder of this obligation is not entitled to demand payment of this obligation out of any money raised by taxation.”

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Terms Used In Texas Government Code 1502.054

  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • 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.