Sec. 285.004.  TERMS.  (a)  Subject to this section, the parties to a revenue anticipation agreement determine its terms.
(b)  The term of the revenue anticipation agreement may not exceed two years.
(c)  An advance may not be made to a district under a revenue anticipation agreement more than once each month.  The amount of an advance may not exceed the difference between (1) the district's accumulated, unpaid operating and maintenance expenses, and (2) the district's revenue and income, including tax revenue, actually received by the district to the date of the advance and lawfully available for paying those expenses, together with the operating reserves reasonably required for one month.
(d)  The party making the advances may rely on a certification made by the district's authorized officers concerning facts specified by Subsection (c).
(e)  Amounts advanced under a revenue anticipation agreement may bear interest at a rate or rates not more than the legal rate for district revenue bonds, and the agreement may provide that the rate of interest on those amounts may be determined at the time the advance is made by reference to any determinative factors and formulae on which the parties agree.
(f)  The agreement must provide:
(1)  for the advanced amounts to mature and become due and payable on a date on or before the day the agreement ends;  and
(2)  that the advanced amounts may be paid without penalty at any time before maturity.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.