Texas Statutes
Subchapter B. Bonds for Navigational Facilities in Certain Coastal Municipalities
Section 1505.055. Authority to Borrow From United States

Sec. 1505.055. AUTHORITY TO BORROW FROM UNITED STATES. (a) To construct and maintain a project, a municipality may borrow money from the United States or an agency of the United States created for the purpose of making such a loan.
(b) To obtain the loan, a municipality may encumber:
(1) the property and facilities of the project acquired or to be acquired;
(2) the revenue and income from the operation of the project acquired or to be acquired; and
(3) anything relating to the project acquired or to be acquired.
(c) As additional security for the loan, the municipality may:
(1) encumber the net revenue and income from the operation of all projects; and
(2) provide in the encumbrance for a grant, to a purchaser under sale or foreclosure, of a franchise to operate the encumbered project for a term not to exceed 20 years from the date of purchase, subject to all laws regulating the same then in force.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.

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