Texas § LG.101.006 - RECEIVERSHIP FOR PAYMENT OF DEBTS
Full text of Texas The Texas Constitution § LG.101.006 — RECEIVERSHIP FOR PAYMENT OF DEBTS, with citation guidance and answers to common questions.
§ LG.101.006. RECEIVERSHIP FOR PAYMENT OF DEBTS
RECEIVERSHIP FOR PAYMENT OF DEBTS. (a) On the failure of the municipality to accomplish a compromise of its debts or pending the negotiation of a compromise, the municipality may apply to the district court of the county in which the municipality is located to have the court take charge of the collection and appropriation of all taxes levied and assessed by the municipality, except an amount of taxes necessary to pay the current expenses of the municipality. The application must describe the financial condition and insolvency of the municipality. (b) After the application is made to the district court, the court shall appoint a receiver or designate the assessor and collector of the municipality as receiver to collect and pay into a named depository, for the payment of the municipal debts, all taxes levied by the municipality. The district court may not appoint a receiver except on the voluntary application of the municipality. (c) The district court shall decide all questions of priority between conflicting claimants of the municipal funds in the depository and shall provide for the ratable and equitable distribution of the funds among all creditors entitled to the funds. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. SUBCHAPTER B. PROVISIONS APPLICABLE TO HOME-RULE MUNICIPALITIES
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § LG.101.006
What does The Texas Constitution § LG.101.006 cover?
Section LG.101.006 ("RECEIVERSHIP FOR PAYMENT OF DEBTS") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § LG.101.006?
A common citation format is "The Texas Constitution § LG.101.006" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § LG.101.006 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.