Tex. Water Code § 55.518
This is the official text of Tex. Water Code § 55.518, part of Texas’s Water Code — governs water rights and water resource management.
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.
§ 55.518. INTEREST AND SINKING FUND.
Official statutory text
(a) The district shall have an interest and sinking fund which shall consist of all taxes collected under the provisions of this chapter for this fund.
(b) Money in the interest and sinking fund shall be paid out only:
(1) to satisfy and discharge interest on the bonds;
(2) to pay the bonds;
(3) to defray the expense of assessing and collecting the tax; and
(4) to pay principal and interest due to the United States under a contract with the district under which bonds have not been deposited with the United States.
(c) The board shall order money from the fund to be paid out by warrants drawn as provided in this chapter. When funds are paid out, the depository shall receive and cancel the interest coupon or bond paid, and the interest coupon or bond shall be delivered to the board to be cancelled and destroyed.
(b) Money in the interest and sinking fund shall be paid out only:
(1) to satisfy and discharge interest on the bonds;
(2) to pay the bonds;
(3) to defray the expense of assessing and collecting the tax; and
(4) to pay principal and interest due to the United States under a contract with the district under which bonds have not been deposited with the United States.
(c) The board shall order money from the fund to be paid out by warrants drawn as provided in this chapter. When funds are paid out, the depository shall receive and cancel the interest coupon or bond paid, and the interest coupon or bond shall be delivered to the board to be cancelled and destroyed.
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.