Texas Education Code

§ 43.011 — AUTHORIZED REFUNDING OF DEFAULTED SCHOOL BONDS

ED § 43.011Title 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)In compliance with this section, the State Board of Education may revise, readjust, modify, refinance, or refund defaulted bonds issued by any school district in this state and owned by either the permanent school fund or the available school fund.

(b)Application must be made to the State Board of Education by the district that issued the bonds and must show that:

(1)delinquent interest totals at least 50 percent of the principal amount of the bonds; and

(2)taxable valuation has decreased to such an extent that a full application of the proceeds of the voted authorized tax authorized to be levied on the $100 taxable property valuation will not meet interest and principal annually maturing on the bonds.

(c)The State Board of Education may effect a refunding of the debt due and to become due only if the board finds that:

(1)the district is unable to pay the sums already matured and the sums contracted to be paid as they mature by paying annually to the State Board of Education the full proceeds of a 50-cent tax levy on the $100 of all taxable valuation of property in the district;

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Legislative history

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