Sec. 501.008. LIMITATION ON FINANCIAL OBLIGATION. (a) Except as provided by Subsection (b), a corporation may not incur a financial obligation that cannot be paid from:
(1) bond proceeds;
(2) revenue realized from the lease or sale of a project;
(3) revenue realized from a loan made by the corporation to wholly or partly finance or refinance a project; or
(4) money granted under a contract with a municipality under Section 380.002.
(b) A Type A or Type B corporation may obtain a loan from the Texas small and rural community success fund program under Subchapter E, Chapter 489, Government Code, for eligible projects as authorized by this subtitle. To secure the loan, the Type A or Type B corporation may pledge revenue from the sales and use tax imposed by the corporation's authorizing municipality under Chapter 504 or 505, as applicable, for the benefit of the corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.
Amended by:
Acts 2021, 87th Leg., R.S., Ch. 947 (S.B. 1465), Sec. 2, eff. June 18, 2021.
Structure Texas Statutes
Title 12 - Planning and Development
Chapter 501 - Provisions Governing Development Corporations
Subchapter A. General Provisions
Section 501.003. Who May Be User
Section 501.004. Legislative Findings; Construction of Subtitle
Section 501.005. Adoption of Alternate Procedure
Section 501.006. Use of Corporation to Finance Project
Section 501.007. Lending Credit or Granting Public Money
Section 501.008. Limitation on Financial Obligation
Section 501.009. Police Powers Not Affected
Section 501.010. Delegation of Unit's Sovereign Powers Prohibited
Section 501.011. Reference to Articles of Incorporation or Certificate of Formation