Sec. 1502.053. GRANT OF FRANCHISE. As additional security for public securities issued or obligations incurred under this chapter, the municipality by the terms of the encumbrance may grant a purchaser under sale or foreclosure a franchise to operate the encumbered utility system, park, or pool for a term not to exceed 20 years from the date of purchase, subject to all laws regulating the operation of the utility system, park, or pool in force at the time of the sale or foreclosure.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Renumbered from Government Code Sec. 1502.055 and amended by Acts 1999, 76th Leg., ch. 1064, Sec. 22, eff. Sept. 1, 1999.
Structure Texas Statutes
Subtitle J - Specific Authority for Municipalities to Issue Securities
Chapter 1502 - Public Securities for Municipal Utilities, Parks, or Pools
Subchapter B. Public Securities for Utility Systems, Parks, or Pools
Section 1502.051. Authority to Issue Public Securities
Section 1502.052. Pledge of Revenue
Section 1502.053. Grant of Franchise
Section 1502.054. Obligations Not Payable From Taxes
Section 1502.056. Operating Expenses as First Lien
Section 1502.057. Charges for Services
Section 1502.058. Limitation on Use of Revenue
Section 1502.059. Transfer of Revenue to General Fund
Section 1502.060. Use and Investment of Proceeds
Section 1502.061. Additional Obligations to Improve or Extend Utility System
Section 1502.063. Additional Authority of Municipality With a Population of 50,000 or More
Section 1502.064. Credit Agreement for Reserve Fund
Section 1502.065. Refunding Bonds
Section 1502.067. Records: Noncash Basis
Section 1502.068. Annual Report
Section 1502.069. Offenses; Penalty
Section 1502.070. Management and Control of Utility System
Section 1502.073. Notice to Governing Body Before Foreclosure or Other Action