Sec. 8189.106. 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, including the power to divide into two or more districts.
(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 revenue 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 under Section 8189.103(c).
(c) Any other district obligation is divided pro rata among the new districts on an acreage basis or on other terms that are satisfactory to the new districts.
Added by Acts 2007, 80th Leg., R.S., Ch. 752 (H.B. 3182), Sec. 1, eff. September 1, 2007.
Structure Texas Statutes
Special District Local Laws Code
Title 6 - Water and Wastewater
Subtitle F - Municipal Utility Districts
Chapter 8189 - Tradition Municipal Utility District No. 2 of Denton County
Subchapter C. Powers and Duties
Section 8189.101. Municipal Utility District Powers and Duties
Section 8189.102. Road Projects
Section 8189.103. Division of District; Requirements
Section 8189.104. Election for Division of District
Section 8189.105. Election of Directors of New Districts
Section 8189.106. Continuing Powers and Obligations of New Districts
Section 8189.107. Compliance With Municipal Ordinances or Resolutions