Texas § 1023.162 AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.

Texas Statutes

§ 1023.162 — AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.

Texas § 1023.162

Code SDSpecial District Local Laws Code

This text of Texas § 1023.162 (AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Special District Local Laws Code Code Ann. § 1023.162 (2026).

Text

Sec. 1023.162. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.

(a)The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board determines that:

(1)money is not available to meet lawful obligations of the district; and

(2)an emergency exists.

(b)To secure a loan, the board may pledge:

(1)district revenue that is not pledged to pay the district's bonded indebtedness;

(2)tax revenue to be collected by the district in the next 12-month period that is not pledged to pay the principal of or interest on district bonds; or

(3)district bonds that have been authorized but not sold.

(c)A loan for which tax revenue or bonds are pledged must mature not later than the first anniversary of

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Sec. 1023.162. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY. (a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board determines that:
(1) money is not available to meet lawful obligations of the district; and
(2) an emergency exists.
(b) To secure a loan, the board may pledge:
(1) district revenue that is not pledged to pay the district's bonded indebtedness;
(2) tax revenue to be collected by the district in the next 12-month period that is not pledged to pay the principal of or interest on district bonds; or
(3) district bonds that have been authorized but not sold.
(c) A loan for which tax revenue or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which other district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made.
(d) The board may not spend money obtained from a loan under this section for any purpose other than:
(1) the purpose for which the board declared an emergency; and
(2) if district tax revenue or bonds are pledged to pay the loan, the purpose for which the pledged taxes were imposed or the pledged bonds were authorized.
SUBCHAPTER E. BONDS