Sec. 1477.064. RATES AND CHARGES. (a) If bonds issued under this subchapter are secured solely by a pledge of net revenue of the project, the commissioners court shall contract for and impose rates and charges for water supplied by the project that will be sufficient to: (1) operate and maintain the project; (2) pay when due the principal of and interest on the bonds; and (3) establish any reserves provided in the order authorizing the issuance of the bonds. (b) A bond secured solely by a pledge of net revenue: (1) is not a debt of the county issuing the bond; (2) may be a charge only on pledged revenue of a project; (3) may not be included in determining the power of the county to issue bonds or incur other debt for any purpose authorized by law; and (4) must contain the following provision: "The holder of this bond is not entitled to demand payment of this obligation out of any money raised by taxation."
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