Texas Expense Limitation Agreement

• Category: Corporations - Public
• State: Multi-State
• Control #: US-EG-9176
• Format: Word; Rich Text

Description

Expense Limitation Agreement between Garnder Lewis Investment Trust and Garnder Lewis Aset Management, Inc. dated February 28, 1999. 4 pages

A Texas Expense Limitation Agreement (ELA) is a legal contract that outlines financial restrictions and limitations on expenses for a specific project or business operation in the state of Texas. This agreement is designed to control and regulate spending, ensuring financial sustainability and accountability. The primary purpose of a Texas Expense Limitation Agreement is to establish a framework for managing expenditures and preventing overspending. It generally includes provisions that define the types of expenses, their maximum thresholds, and the conditions under which they can be incurred. By clearly outlining these limitations, ELA's help organizations maintain fiscal responsibility and avoid unnecessary financial burdens. There are various types of Expense Limitation Agreements applicable in Texas, depending on the nature and context of the project or business operation. Some common types of ELA's include: 1. Government Expense Limitation Agreement: This type of ELA applies to government agencies and public entities within Texas. It sets restrictions on the use of public funds to ensure budgetary control and prevent misuse of taxpayer money. 2. Construction Expense Limitation Agreement: Construction projects often require extensive financial resources. This type of ELA imposes spending limits on materials, labor costs, equipment purchases, and other expenses related to construction projects in Texas. It helps contractors and project owners effectively manage their budgets. 3. Business Expense Limitation Agreement: Businesses operating in Texas can use this type of ELA to control their overall expenditure. It covers various categories such as marketing expenses, employee salaries, office supplies, utility bills, and other operational costs. By setting spending caps, businesses can maintain financial stability and avoid unnecessary overhead. 4. Educational Expense Limitation Agreement: Educational institutions in Texas may utilize this agreement to manage their expenses effectively. It typically covers areas such as faculty salaries, research grants, facility maintenance, educational resources, and student services. This ELA ensures that budgetary constraints are in place, preventing overspending while ensuring the quality of education. 5. Grant Expense Limitation Agreement: Non-profit organizations or entities receiving grants in Texas may need to enter into this type of ELA. It establishes guidelines on how the granted funds should be allocated. By specifying permissible expenses and their limits, it ensures accountability and proper management of the grant money. In conclusion, a Texas Expense Limitation Agreement is a crucial tool for controlling and managing expenditures within various sectors in the state. Whether it's a government agency, construction project, business entity, educational institution, or a grant-receiving organization, an ELA helps set financial boundaries and ensures responsible spending. By providing transparency and accountability, it safeguards the financial stability and long-term success of these entities.