{"data":{"id":"us-tx/tex.-local-government-code-375.264","jurisdiction":"us-tx","citation":"Tex. Local Government Code § 375.264","heading":"LIMITATIONS ON DISSOLUTION BY BOARD OF DISTRICT WITH DEBT.","body":"(a) A district may not be dissolved by its board under Section 375.261 or after a petition is filed under Section 375.262 if the district has outstanding bonded indebtedness until that bonded indebtedness has been repaid or defeased in accordance with the order or resolution authorizing the issuance of the bonds.\n(b) If a petition for dissolution is filed under Section 375.262 with the board of a district and the district has outstanding bonded indebtedness secured by assessments:\n(1) the district shall remain in existence solely for the purposes of winding up district operations and discharging its bonded indebtedness; and\n(2) the board shall use all district money that is available to:\n(A) wind up district operations; and\n(B) repay or defease the bonded indebtedness as soon as practicable in accordance with the order or resolution authorizing the issuance of the bonds.\n(c) Subsection (b) does not apply to a district that has outstanding bonded indebtedness secured by a source other than assessments on the date the petition is filed with the board.\nAdded by Acts 1991, 72nd Leg., ch. 16, Sec. 13.05(a), eff. Aug. 26, 1991. Amended by Acts 1999, 76th Leg., ch. 62, Sec. 13.21, eff. Sept. 1, 1999.\nAmended by:\nActs 2011, 82nd Leg., R.S., Ch. 912 (S.B. 1234), Sec. 18, eff. September 1, 2011.\nActs 2021, 87th Leg., R.S., Ch. 520 (S.B. 604), Sec. 2, eff. September 1, 2021.","path":["LOCAL GOVERNMENT CODE","TITLE 12. PLANNING AND DEVELOPMENT","SUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENT","CHAPTER 375. MUNICIPAL MANAGEMENT DISTRICTS IN GENERAL","SUBCHAPTER M. DISSOLUTION"],"source_url":"https://statutes.capitol.texas.gov/Docs/LG/htm/LG.375.htm#375.264","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:27Z","sha256":"c25ab6f2a9e8d06e2ae93da782d156523f770e9607d6ecfda65c83e0a2cee4a7","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-local-government-code-375.263","next":"us-tx/tex.-local-government-code-375.281"},"notice":"GroundRules: Original legal text. Not legal advice."}