Tex. Educ. Code Section 43.019
Accounting Treatment of Certain Exchanges

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

(6)

the transaction results in an improvement in effective income yield, taking into consideration the deferral of any gain or loss on the sale.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.

Source: Section 43.019 — Accounting Treatment of Certain Exchanges, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­43.­htm#43.­019 (accessed May 26, 2025).

43.001
Composition of Permanent School Fund and Available School Fund 43.002
Transfers from Permanent School Fund and General Revenue Fund to Available School Fund 43.003
Investment of Permanent School Fund 43.004
Written Investment Objectives 43.005
External Investment Managers 43.006
Investment Management 43.007
Purchase and Sale or Exchange of Securities 43.009
Prepayment of Certain Bonds Held by the Permanent School Fund 43.010
Default of School District Securities Held by the Permanent School Fund 43.011
Authorized Refunding of Defaulted School Bonds 43.012
Refunding Other Defaulted Obligations 43.013
Jurisdiction 43.014
Duties of Comptroller 43.015
Duties of Comptroller 43.016
Use of Available School Fund 43.017
Use of Commercial Banks as Agents for Collection of Income from Permanent School Fund Investments 43.018
Participation in Fully Secured Securities Loan Programs 43.019
Accounting Treatment of Certain Exchanges 43.020
Treatment of Accrued Income 43.0031
Permanent School Fund Ethics Policy 43.0032
Conflicts of Interest 43.0033
Reports of Expenditures 43.0034
Forms 43.051
Definitions 43.0051
Transfers to Real Estate Special Fund Account of the Permanent School Fund 43.052
Creation of Corporation 43.053
Board of Directors 43.054
Chief Executive Officer 43.055
Employees 43.056
Sovereign Immunity 43.057
Liability Insurance for Board Members and Employees 43.058
Ethics Policy 43.059
Applicability of Certain Laws 43.060
Exception to Open Meeting Requirements for Certain Consultations Concerning Investments 43.061
Record Retention 43.062
Information Technology and Associated Resources 43.063
General Powers and Duties of Corporation 43.064
Contracting for Facilities and Necessary Support 43.065
Written Investment Objectives 43.066
Distributions by Corporation from Permanent School Fund to Available School Fund 43.067
Bond Guarantee Program 43.068
Annual Audit 43.069
Annual Investment Report 43.070
Report on Anticipated Transfer to Available School Fund 43.071
Gifts, Grants, and Donations
Green check means up to date. Up to date

Verified:
May 26, 2025

§ 43.019. Acct. Treatment of Certain Exchanges's source at texas​.gov