Tex. Special District Local Laws Code § 1027.305
This is the official text of Tex. Special District Local Laws Code § 1027.305, part of Texas’s Special District Local Laws Code — consolidates the individual laws creating Texas's special-purpose local government districts.
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.
§ 1027.305. SALE OR TRANSFER OF ASSETS AND LIABILITIES.
Official statutory text
(a) The district may not be dissolved unless the board provides for the sale or transfer of the district's assets and liabilities to another person.
(b) The dissolution of the district and the sale or transfer of the district's assets or liabilities may not:
(1) contravene a trust indenture or bond resolution relating to the district's outstanding bonds; or
(2) diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.
(c) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.
(d) The district may transfer or sell the district's assets only for due compensation, unless the transfer or sale is made to another governmental agency serving the district and using the transferred or purchased assets for the benefit of the residents formerly in the district.
(e) A grant from federal funds is an obligation to be repaid in full.
(b) The dissolution of the district and the sale or transfer of the district's assets or liabilities may not:
(1) contravene a trust indenture or bond resolution relating to the district's outstanding bonds; or
(2) diminish or impair the rights of a holder of an outstanding bond, warrant, or other obligation of the district.
(c) The sale or transfer of the district's assets and liabilities must satisfy the debt and bond obligations of the district in a manner that protects the interests of district residents, including the residents' collective property rights in the district's assets.
(d) The district may transfer or sell the district's assets only for due compensation, unless the transfer or sale is made to another governmental agency serving the district and using the transferred or purchased assets for the benefit of the residents formerly in the district.
(e) A grant from federal funds is an obligation to be repaid in full.
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.