Sec. 8109.107. CONTINUING POWERS AND OBLIGATIONS OF NEW DISTRICTS. (a) Each new district may incur and pay debts and has all powers of the original district created by this chapter.
(b) If the district is divided as provided by this subchapter, the current obligations and any bond authorizations of the district are not impaired. Debts shall be paid by revenues or by taxes or assessments imposed on real property in the district as if the district had not been divided or by contributions from each new district as stated in the terms set by the board in the plan for division.
(c) Any other district obligation shall be divided pro rata among the new districts and the original district on an acreage basis or on other terms that are satisfactory to the new districts.
Added by Acts 2005, 79th Leg., Ch. 566 (H.B. 1346), Sec. 1, eff. September 1, 2005.
Structure Texas Statutes
Special District Local Laws Code
Title 6 - Water and Wastewater
Subtitle F - Municipal Utility Districts
Chapter 8109 - Cll Municipal Utility District No. 1
Subchapter C. Division of District to Multiple Districts
Section 8109.101. Division of District; Prerequisites
Section 8109.102. District Division by Election
Section 8109.103. District Division by Consent
Section 8109.104. Notice of Division
Section 8109.105. District Names Following Division
Section 8109.106. Election of Directors of New Districts
Section 8109.107. Continuing Powers and Obligations of New Districts