(a) A municipality may borrow money to finance all or part of the cost of the acquisition, establishment, improvement, or repair of motor vehicle testing stations and may pledge all or part of the fees or other receipts derived from the operation of the stations for payment of principal and interest on the loan.(b) A municipality may encumber a testing station, including things acquired pertaining to the station, to secure the payment of funds to construct all or part of the station or to improve, operate, or maintain the station. An encumbrance is not a debt of the municipality but is solely a charge on the property encumbered and may not be considered in determining the power of the municipality to issue bonds. Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.
Texas Legal Code