Texas § GV.1501.213 - SEGREGATION OF PROPERTIES

§ GV.1501.213. SEGREGATION OF PROPERTIES

SEGREGATION OF PROPERTIES. (a) Notwithstanding Section 1501.212 (2), the payment or security of the district's outstanding bonds may not be impaired. (b) If money is not available at the bank of payment for the district's bonds to pay the principal of or the interest on the bonds as it becomes due, the water board shall segregate from the municipal water and sewer system all district property purchased under this subchapter, including any replacement, renewal, or improvements of that property. (c) The segregation of property must be accomplished so that the district property: (1) is a complete and operating system; and (2) serves substantially the same area as the district property served when title to the property vested in the municipality. (d) After segregation, the water board: (1) shall maintain and operate the district system separately; (2) shall comply with the resolutions authorizing the district's outstanding bonds; and (3) has each power, duty, and obligation previously held by the district's board of directors regarding the: (A) maintenance and operation of the system; (B) handling of the district's funds; and (C) payment of the district's outstanding bonds. (e) For purposes of Subsection (d), the water board is a body corporate and occupies the same position as the district's board of directors. Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. SUBCHAPTER F. ALTERNATIVE WATER SUPPLY FINANCING PROCEDURE FOR MUNICIPALITIES WITH POPULATION OF MORE THAN 275,000