Tex. Local Government Code § 504.104
This is the official text of Tex. Local Government Code § 504.104, part of Texas’s Local Government Code — governs the powers and operations of Texas cities and counties.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 504.104. ASSUMPTION OR PAYMENT OF PREEXISTING DEBT PROHIBITED.
Official statutory text
A Type A corporation may not:
(1) assume a debt that existed before the date the authorizing municipality authorized the creation of the corporation; or
(2) make an expenditure to pay the principal of or interest on a debt that existed before the date prescribed by Subdivision (1).
(1) assume a debt that existed before the date the authorizing municipality authorized the creation of the corporation; or
(2) make an expenditure to pay the principal of or interest on a debt that existed before the date prescribed by Subdivision (1).
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.