Sec. 263.103.  CREATION OF ENCUMBRANCE.  (a)  A lease or other agreement executed under this subchapter may not subject the real property to a pledge or mortgage, other than existing revenue bonds, refunding bonds, or other indentures for the release of existing revenue bonds, or to an encumbrance that did not exist on the date the lease or agreement was executed.
(b)  A lease under this subchapter must specifically provide that the real property subject to the lease is not encumbered or mortgaged by the lease or by any agreement executed in connection with the lease.
Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.