Texas Local Government Code

§ 62.161 — SETTLEMENT BY CORPORATE OFFICERS

LG § 62.161Title 2. ORGANIZATION OF MUNICIPAL GOVERNMENT · Part E. CONSOLIDATION AND ABOLITION OF MUNICIPALITIES · Ch. 62. ABOLITION OF MUNICIPALITIES · Art. E. PAYMENT OF INDEBTEDNESS AND DISPOSITION OF ASSETS BY CORPORATE OFFICERS OR TRUSTEES

Statute text

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(a)If a municipality or de facto municipality that has indebtedness outstanding is abolished, declared void by a court of competent jurisdiction, or ceases to operate and exercise municipal functions, the municipality's officers at the time the municipality is dissolved or ceases to function shall:

(1)take control of the municipality's property;

(2)sell and dispose of the municipality's property; and

(3)settle the debts owed by the municipality.

(b)For the purpose of settling the debts of the municipality, the former municipal officers may levy and collect a tax on the residents of the municipality in the same manner as the municipality could have done.

Legislative history

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.