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Texas Statutes (Last Updated: January 4, 2014) |
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WATER CODE |
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Title 4. GENERAL LAW DISTRICTS |
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Chapter 56. DRAINAGE DISTRICTS |
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Subchapter F. ISSUANCE OF BONDS AND NOTES |
Sec. 56.213. TAX ANTICIPATION NOTES; BOND ANTICIPATION NOTES
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(a) A district may borrow money by issuing negotiable tax anticipation notes or bond anticipation notes if the board finds that the district has an insufficient amount of money available to:
(1) pay the principal of or interest on any district bond payable in whole or in part by taxes; or
(2) meet any other need of the district.
(b) The district may issue tax anticipation notes or bond anticipation notes without giving notice or otherwise advertising the issuance of the notes.
(c) A tax anticipation note or bond anticipation note must mature not later than one year after the date the note is issued.
(d) The district may issue tax anticipation notes for any purpose for which the district is authorized to levy taxes. The notes must be secured with the proceeds of taxes to be levied by the district in the 12-month period following issuance of the note. The district may covenant with purchasers of the notes that the district will levy a tax sufficient to pay the principal of and interest on the notes and to pay the costs of collecting the tax.
(e) The district may issue bond anticipation notes for any purpose for which bonds of the district have been approved by voters or to refund previously issued bond anticipation notes. A district may covenant with purchasers of the notes that the district will use the proceeds of the sale of any district bonds in the process of issuance to refund the notes. A district that covenants under this subsection shall use the bond proceeds to pay the principal, interest, or redemption price on the notes.
(f) A district required to seek commission approval of bonds must have an application for approval of a bond on file with the commission before issuing bond anticipation notes secured by the bond.