Sec. 1504.107. OPERATING EXPENSES AS FIRST LIEN. (a) If the revenue from a building or structure described by Section 1504.102 is encumbered under this subchapter, each expense of operation and maintenance, including all salaries, labor, materials, interest, repairs and additions necessary to provide efficient service, and each proper item of expense, is a first lien against that revenue.
(b) An expense for a repair or addition is a first lien only if, in the judgment of the governing body of the municipality, the repair or addition is necessary to:
(1) keep the building or structure in operation and provide adequate service to the municipality and its residents; or
(2) respond to a physical accident or condition that would otherwise impair the original security.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.
Structure Texas Statutes
Subtitle J - Specific Authority for Municipalities to Issue Securities
Chapter 1504 - Obligations for Municipal Buildings
Section 1504.101. Applicability of Subchapter
Section 1504.102. Authority for Auditoriums and Exhibition Facilities
Section 1504.103. Authority to Issue Bonds, Notes, and Warrants
Section 1504.104. Pledge of Revenue
Section 1504.105. Obligations Not Payable From Taxes
Section 1504.107. Operating Expenses as First Lien
Section 1504.108. Charges for Services
Section 1504.109. Use of Revenue for Other Purposes Prohibited