Sec. 454.028. OBLIGATION OF TRANSPORTATION SYSTEM NOT MUNICIPAL DEBT. (a) An obligation of a mass transportation system:
(1) is not a debt of the municipality;
(2) is solely a charge on the property, including the pledged revenue, of the encumbered system; and
(3) may not be included in determining the power of the municipality to issue any bonds or notes for any purpose authorized by law.
(b) A municipality may make payments on bonds or notes issued under this chapter out of any other funds that lawfully may be used for that purpose.
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 B. Revenue Bonds and Notes
Section 454.021. Authority to Issue
Section 454.022. Notice of Ordinance Authorizing Issuance
Section 454.023. Petition for Election
Section 454.025. Encumbrance of Transportation System
Section 454.026. Transportation System Franchise
Section 454.027. Operating Expenses as Lien on Revenue
Section 454.028. Obligation of Transportation System Not Municipal Debt