{"data":{"id":"us-tx/tex.-local-government-code-501.008","jurisdiction":"us-tx","citation":"Tex. Local Government Code § 501.008","heading":"LIMITATION ON FINANCIAL OBLIGATION.","body":"(a) Except as provided by Subsection (b), a corporation may not incur a financial obligation that cannot be paid from:\n(1) bond proceeds;\n(2) revenue realized from the lease or sale of a project;\n(3) revenue realized from a loan made by the corporation to wholly or partly finance or refinance a project; or\n(4) money granted under a contract with a municipality under Section 380.002.\n(b) A Type A or Type B corporation may obtain a loan from the Texas small and rural community success fund program under Subchapter E, Chapter 489, Government Code, for eligible projects as authorized by this subtitle. To secure the loan, the Type A or Type B corporation may pledge revenue from the sales and use tax imposed by the corporation's authorizing municipality under Chapter 504 or 505, as applicable, for the benefit of the corporation.\nAdded by Acts 2007, 80th Leg., R.S., Ch. 885 (H.B. 2278), Sec. 3.01, eff. April 1, 2009.\nAmended by:\nActs 2021, 87th Leg., R.S., Ch. 947 (S.B. 1465), Sec. 2, eff. June 18, 2021.","path":["LOCAL GOVERNMENT CODE","TITLE 12. PLANNING AND DEVELOPMENT","SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT","CHAPTER 501. PROVISIONS GOVERNING DEVELOPMENT CORPORATIONS","SUBCHAPTER A. GENERAL PROVISIONS"],"source_url":"https://statutes.capitol.texas.gov/Docs/LG/htm/LG.501.htm#501.008","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:27Z","sha256":"db862b4bd39a3e1e589b8fcbf6063a0f2da520b1ebad0867406390e0e8dceae2","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-local-government-code-501.007","next":"us-tx/tex.-local-government-code-501.009"},"notice":"GroundRules: Original legal text. Not legal advice."}