Texas Education Code

§ 43.019 — ACCOUNTING TREATMENT OF CERTAIN EXCHANGES

ED § 43.019Title 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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The State Board of Education may account for the exchange of permanent school fund securities in a closely related sale and purchase transaction in a manner in which the gain or loss on the sale is deferred as an adjustment to the book value of the security purchased, if:

(1)the security sold and the security purchased have a fixed maturity value;

(2)the board is authorized by law to invest the permanent school fund in the security purchased;

(3)the sale is made in clear contemplation of reinvesting substantially all of the proceeds;

(4)substantially all of the proceeds are reinvested;

(5)the transaction is completed within a reasonable time after the sale, not to exceed 30 business days; and

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Legislative history

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