LIMITATION ON FINANCIAL OBLIGATION.
Tex. LOC. GOV'T Code § 501.008.
in effect(a) Except as provided by Subsection (b), a corporation may not incur a financial obligation that cannot be paid from:
(1) bond proceeds;
(2) revenue realized from the lease or sale of a project;
(3) revenue realized from a loan made by the corporation to wholly or partly finance or refinance a project; or
(4) money granted under a contract with a municipality under Section 380.002 .
(b) A Type A or Type B corporation may obtain a loan from the Texas small and rural community success fund program under Subchapter E , Chapter 489 , Government Code, for eligible projects as authorized by this subtitle. To secure the loan, the Type A or Type B corporation may pledge revenue from the sales and use tax imposed by the corporation's authorizing municipality under Chapter 504 or 505 , as applicable, for the benefit of the corporation.
Added by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278 ), Sec. 3.01, eff. April 1, 2009.