Sec. 454.007. USE OF REVENUE TO PAY OTHER MUNICIPAL DEBTS PROHIBITED. (a) Except as permitted by the ordinance authorizing the bonds or notes or the deed of trust or indenture securing the bonds or notes or as provided by Subsection (b), the revenue of a mass transportation system may not be used to pay any other debt, expense, or obligation of the municipality.
(b) An acquired mass transportation system may pay the municipality that acquired the system for the loss of ad valorem taxes previously paid by the owners of the system until the indebtedness secured by the taxes is paid.
Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Structure Texas Statutes
Subtitle K - Mass Transportation
Chapter 454 - Municipal Mass Transportation Systems
Subchapter A. General Provisions
Section 454.002. Essential Governmental Functions
Section 454.003. Federal Grants and Loans
Section 454.005. Lease of System
Section 454.007. Use of Revenue to Pay Other Municipal Debts Prohibited
Section 454.008. Records and Accounts