Texas Education Code

§ 43.010 — DEFAULT OF SCHOOL DISTRICT SECURITIES HELD BY THE PERMANENT SCHOOL FUND

ED § 43.010Title 2. PUBLIC EDUCATION · Part I. SCHOOL FINANCE AND FISCAL MANAGEMENT · Ch. 43. PERMANENT SCHOOL FUND AND AVAILABLE SCHOOL FUND · Art. A. GENERAL PROVISIONS

Statute text

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(a)If interest or principal has not been paid for two years or more on any bonds issued by any school district and held by the permanent school fund, the State Board of Education may:

(1)compel the district to levy a tax sufficient to meet the interest and principal payments then or later due; or

(2)if the district furnishes to the State Board of Education satisfactory proof that the district's taxing ability is insufficient, require the district to:

(A)exhaust all legal remedies in collecting delinquent taxes; and

(B)levy a tax at the maximum lawful rate on the bona fide valuation of taxable property located in the district.

(b)Revenue collected by either method specified by Subsection (a) shall be distributed proportionately to all owners of the defaulted securities in compliance with the following:

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Legislative history

Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.