Sec. 504.104. ASSUMPTION OR PAYMENT OF PREEXISTING DEBT PROHIBITED. A Type A corporation may not:
(1) assume a debt that existed before the date the authorizing municipality authorized the creation of the corporation; or
(2) make an expenditure to pay the principal of or interest on a debt that existed before the date prescribed by Subdivision (1).
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.
Structure Texas Statutes
Title 12 - Planning and Development
Chapter 504 - Type a Corporations
Subchapter C. General Powers and Duties
Section 504.101. Applicability of Other Law; Conflicts
Section 504.102. Contract With Other Private Corporation
Section 504.103. Limitation on Primary Purpose of Project; Exceptions
Section 504.104. Assumption or Payment of Preexisting Debt Prohibited
Section 504.105. Limitation on Use of Revenues for Promotional Purpose