Texas Local Government Code 336.306 – Security Pledged
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(a) To secure the payment of a district’s bonds, the district may:
(1) pledge all or part of revenue realized from any tax that the district may impose;
(2) pledge all or part of revenue from library facilities; or
(3) mortgage all or part of the district’s facilities, including any part of the facilities subsequently acquired.
(b) A district may, subject to the terms of the bond indenture or the resolution authorizing the issuance of the bonds, secure payment of district bonds by encumbering a separate item of the district facilities and may acquire, use, hold, or contract for the property by lease, chattel mortgage, or other conditional sale.
Terms Used In Texas Local Government Code 336.306
- 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
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Property: means real and personal property. See Texas Government Code 311.005
(c) This subchapter does not prohibit a district from encumbering one or more library facilities to purchase, construct, or improve one or more other district facilities.