Texas Statutes
Subchapter E. Payment of Indebtedness and Disposition of Assets by Corporate Officers or Trustees
Section 62.161. Settlement by Corporate Officers

Sec. 62.161. SETTLEMENT BY CORPORATE OFFICERS. (a) If a municipality or de facto municipality that has indebtedness outstanding is abolished, declared void by a court of competent jurisdiction, or ceases to operate and exercise municipal functions, the municipality's officers at the time the municipality is dissolved or ceases to function shall:
(1) take control of the municipality's property;
(2) sell and dispose of the municipality's property; and
(3) settle the debts owed by the municipality.
(b) For the purpose of settling the debts of the municipality, the former municipal officers may levy and collect a tax on the residents of the municipality in the same manner as the municipality could have done.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

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