(a) The board may borrow money at a rate not to exceed the maximum annual percentage rate allowed by law for district obligations at the time the loan is made if the board declares that:(1) money is not available to meet authorized obligations of the district; and(2) an emergency exists.(b) To secure a loan, the board may pledge:(1) district revenue that is not pledged to pay the district's bonded indebtedness;(2) district taxes to be imposed by the district during the 12-month period following the date of the pledge that are not pledged to pay the principal of or interest on district bonds; or(3) district bonds that have been authorized but not sold. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.
Texas Legal Code