Texas § 1084.159 AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.

Texas Statutes

§ 1084.159 — AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.

Texas § 1084.159

Code SDSpecial District Local Laws Code

This text of Texas § 1084.159 (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. § 1084.159 (2026).

Text

Sec. 1084.159. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY.

(a)If money is not available to meet an authorized obligation of the district, the board shall adopt an order declaring an emergency. After the order is adopted, the board may borrow money on district notes at a rate not to exceed 12 percent a year to meet the obligation.

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

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

(2)a district tax that is to be imposed not later than the first anniversary of the date of the loan and 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 taxes or bonds are pledged must mature not later than the first ann

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Sec. 1084.159. AUTHORITY TO BORROW MONEY IN EMERGENCY; SECURITY. (a) If money is not available to meet an authorized obligation of the district, the board shall adopt an order declaring an emergency. After the order is adopted, the board may borrow money on district notes at a rate not to exceed 12 percent a year to meet the obligation.
(b) To secure the loan, the board may pledge:
(1) district revenue that is not pledged to pay the district's bonded indebtedness;
(2) a district tax that is to be imposed not later than the first anniversary of the date of the loan and 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 taxes or bonds are pledged must mature not later than the first anniversary of the date the loan is made. A loan for which district revenue is pledged must mature not later than the fifth anniversary of the date the loan is made.
(d) The board may spend money obtained from a loan under this section only to meet the obligation that made the loan necessary. The board may spend money obtained from any taxes or bonds used to secure the loan only for the purpose for which the taxes were imposed or the bonds were authorized.
SUBCHAPTER E. BONDS