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Texas Statutes (Last Updated: January 4, 2014) |
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GOVERNMENT CODE |
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Title 9. PUBLIC SECURITIES |
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Subtitle I. SPECIFIC AUTHORITY FOR COUNTIES TO ISSUE SECURITIES |
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Chapter 1477. OBLIGATIONS FOR OTHER COUNTY PURPOSES |
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Subchapter B. BONDS FOR WATER SUPPLY FOR COUNTY PURPOSES |
Sec. 1477.064. RATES AND CHARGES
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(a) If bonds issued under this subchapter are secured solely by a pledge of net revenue of the project, the commissioners court shall contract for and impose rates and charges for water supplied by the project that will be sufficient to:
(1) operate and maintain the project;
(2) pay when due the principal of and interest on the bonds; and
(3) establish any reserves provided in the order authorizing the issuance of the bonds.
(b) A bond secured solely by a pledge of net revenue:
(1) is not a debt of the county issuing the bond;
(2) may be a charge only on pledged revenue of a project;
(3) may not be included in determining the power of the county to issue bonds or incur other debt for any purpose authorized by law; and
(4) must contain the following provision: "The holder of this bond is not entitled to demand payment of this obligation out of any money raised by taxation."