Texas Government Code 1502.061 – Additional Obligations to Improve or Extend Utility System
Current as of: 2024 | Check for updates
|
Other versions
(a) A municipality that has outstanding public securities secured by the net revenue of a utility system may issue additional public securities or incur other obligations for a purpose described by § 1502.051(a)(1) or (b).
(b) Except as provided by Subsection (c), public securities issued under Subsection (a) constitute a lien on the revenue of the affected system:
(1) in the order of issuance; and
(2) inferior to a lien securing payment of outstanding public securities, as determined by the governing body of the municipality.
Terms Used In Texas Government Code 1502.061
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
(c) A municipality may issue additional public securities under this section on a parity and of equal dignity with the outstanding public securities if the ordinance, deed of trust, or indenture of trust authorizing or securing the outstanding public securities provides for the subsequent issuance of additional parity public securities, subject to that ordinance, deed of trust, or indenture of trust.
(d) To the extent of a conflict or inconsistency between this section and another law, this section controls.