Section 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.Tex. Gov't. Code § 1371.103
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. 9/1/1999.Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 20, eff. 9/1/1999.