OBLIGATIONS.
Tex. SPEC. DIST. LOCAL LAWS Code § 3001.152.
in effect(a) The district may issue any type of obligation for any district purpose. An obligation may be issued under Chapter 1371 , Government Code.
(b) When authorizing the issuance of an obligation, the district may also authorize the later issuance of a parity or subordinate lien obligation.
(c) A district obligation must:
(1) mature not later than the 40th anniversary of the date of issuance; and
(2) state on its face that the obligation is not a state obligation.
(d) A district obligation may be payable from or secured by:
(1) any source of money, including district revenue, loans, or assessments; or
(2) a lien, pledge, mortgage, or other security interest on district revenue or property.
(e) The district may use obligation proceeds for any purpose, including to pay:
(1) into a reserve fund for debt service;
(2) for the repair or replacement of property, including buildings and equipment;
(3) interest on obligations; or
(4) for the operation of a sugar mill or other agricultural enterprise.
(f) The district may contract with an obligation holder to impose an assessment to pay for the operation of a sugar mill or other agricultural enterprise.