1. (a) The board may borrow money at a rate the board determines is reasonable.

2. (b) To secure a loan, the board may pledge:

   1. (1) district revenue that is not pledged to pay the district's bonded indebtedness;
   2. (2) tax revenue to be collected by the district in the next 12-month period that is not pledged to pay the principal of or interest on district bonds;
   3. (3) district bonds that have been authorized but not sold; and
   4. (4) any other unencumbered district assets.
3. (c) The board may use the proceeds of a loan made under this section only for the district's operational and capital requirements.

Added by Acts 2007, 80th Leg., R.S., Ch. 920 (H.B. 3166), Sec. 1.02, eff. April 1, 2009.