(a) The board may borrow money at a rate the board determines is reasonable.(b) To secure a loan, the board may pledge:(1) district revenue that is not pledged to pay the district's bonded indebtedness;(2) tax revenue to be collected by the district in the next 12-month period that is not pledged to pay the principal of or interest on district bonds;(3) district bonds that have been authorized but not sold; and(4) any other unencumbered district assets.(c) The board may use the proceeds of a loan made under this section only for the district's operational and capital requirements. Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.
Texas Legal Code