Tex. Educ. Code Section 45.004
Refunding Bonds


(a)

In this section:

(1)

“Bond” includes a note or other evidence of indebtedness.

(2)

“Total debt service” means the amount of principal and unpaid interest on a bond to final maturity.

(b)

Each governing board or commissioners court described by Section 45.001 (Bonds and Bond Taxes) may refund or refinance all or any part of any of the district’s outstanding bonds and matured or unmatured but unpaid interest on those bonds payable from ad valorem taxes by issuing refunding bonds payable from ad valorem taxes.

(c)

A series or issue of refunding bonds may not be issued unless:

(1)

the total debt service on the refunding bonds will amount to less than the total debt service on the bonds being refunded;

(2)

if a maximum interest rate was voted for the bonds being refunded, the refunding bonds do not bear interest at a rate higher than that maximum rate; and

(3)

the refunding bonds are payable from taxes of the same nature as those pledged to the payment of the obligations being refunded.

(d)

Refunding bonds may be made redeemable before maturity.

(e)

The refunding bonds may be:

(1)

issued and delivered in lieu of, and on surrender to the comptroller and cancellation of, the obligations being refunded, and the comptroller shall register the refunding bonds and deliver them in accordance with the resolution or order authorizing the refunding bonds; or

(2)

sold for cash in any principal amounts necessary to provide all or any part of the money required to:

(A)

pay the principal of any bonds being refunded and the interest to accrue on the bonds to maturity; or

(B)

redeem any bonds being refunded before maturity, including principal, any required redemption premium, and the interest to accrue on the bonds to the redemption date.

(f)

The refunding may be accomplished in one or in several installment deliveries. Refunding bonds also may be issued and delivered in accordance with any other applicable law.

(g)

To refund bonds or to pay or redeem bonds in whole or in part without issuing refunding bonds, the governing board or commissioners court may deposit directly with the paying agent the proceeds from the sale of refunding bonds or any other available funds or resources. The deposit must be in an amount sufficient, after taking into account both the principal and interest to accrue on the assets of any escrow account created under Subsection (h), to provide for the payment or redemption of the bonds and assumed obligations that are to be refunded or to be paid or redeemed. The deposit constitutes the making of firm banking and financial arrangements for the discharge and final payment or redemption of the bonds being refunded.

(h)

The governing board or commissioners court may enter into an escrow or a similar agreement with the paying agent with respect to the safekeeping, investment, reinvestment, administration, or disposition of the deposits, but the deposits may be invested and reinvested only in direct obligations of the United States, including obligations the principal of and interest on which are unconditionally guaranteed by the United States and that mature or bear interest payable at times and in amounts sufficient to provide for the scheduled payment or redemption of the bonds. The governing board or commissioners court shall enter into an appropriate escrow or a similar agreement if any of the bonds are scheduled to be paid or redeemed on a date later than the next succeeding scheduled interest payment date.

(i)

If the governing body or commissioners court has entered into an escrow or a similar agreement under Subsection (h), the refunded bonds are considered to be defeased and may not be included in or considered to be an indebtedness of the district for the purpose of a limitation on outstanding indebtedness or taxation or for any other purpose.

(j)

Refunding bonds may be issued under this section to refund any bonds that are scheduled to mature or that are subject to redemption before maturity, not more than 20 years from the date of the refunding bonds. The refunding bonds may be sold at public or private sale under the procedures, at the price, and on the terms determined by the governing board or commissioners court. In addition, the bonds may be sold bearing interest at the rate determined by the governing board or commissioners court, but not to exceed the maximum rate prescribed by Chapter 1204 (Interest Rate), Government Code. The governing board or commissioners court may pledge to the payment of any refunding bonds any surplus income to be available from the investment or reinvestment of any deposit made as authorized by this section or any other available revenues, income, or resources.

(k)

The refunding bonds may be issued in an additional amount sufficient to pay the costs and expenses of issuing the bonds and sufficient to fund any debt service reserve, contingency, or other similar fund considered necessary or advisable by the governing board or commissioners court.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.208, eff. Sept. 1, 2001.

Source: Section 45.004 — Refunding Bonds, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­45.­htm#45.­004 (accessed Mar. 23, 2024).

45.001
Bonds and Bond Taxes
45.002
Maintenance Taxes
45.003
Bond and Tax Elections
45.004
Refunding Bonds
45.005
Examination of Bonds by Attorney General
45.006
Maintenance Tax Required for Judgment Ordering Ad Valorem Tax Refund
45.0011
Credit Agreements in Certain School Districts
45.0021
Restriction on Maintenance Tax Levy
45.0031
Limitation on Issuance of Tax-supported Bonds
45.031
Gymnasia, Stadia, and Other Recreational Facilities
45.0032
Components of Maintenance and Operations Tax
45.032
Revenue Bonds
45.033
Rentals, Rates, and Charges
45.034
Pledge of Revenues
45.035
Refunding Bonds
45.036
Examination of Bonds by Attorney General
45.051
Definitions
45.052
Guarantee
45.053
Limitation
45.054
Eligibility of School District Bonds
45.055
Application for Guarantee
45.056
Investigation
45.057
Guarantee Endorsement
45.058
Notice of Default
45.059
Payment of School District Bond on Default
45.060
Bonds Not Accelerated on Default
45.061
Reimbursement of Funds
45.062
Repeated Defaults
45.063
Rules
45.081
Definitions
45.082
Sale of Property
45.083
Other Laws Not Applicable
45.084
Contracts
45.085
Bond Requirements
45.086
Liberal Construction
45.087
Other Powers Unrestricted
45.101
Use of Bond Proceeds for Utility Connections
45.102
Investment of Bond Proceeds in Obligations of United States or Interest-bearing Secured Time Bank Deposits
45.103
Interest-bearing Time Warrants
45.104
Pledge of Delinquent Taxes as Security for Loan
45.105
Authorized Expenditures
45.106
Use of County Available Fund Apportionment for Area Schools Career and Technology Education
45.107
Investment of Gifts, Devises, and Bequests
45.108
Borrowing Money for Current Maintenance Expenses
45.109
Contracts for Athletic Facilities
45.110
Authorized but Unissued Bonds
45.111
Certificates of Indebtedness
45.112
Contracts for Investment of Debt Service Funds
45.113
Trust for County Permanent School Fund
45.151
Definitions
45.152
Creation of Authority
45.153
Board of Directors
45.154
Construction, Acquisition, and Operation of Stadium
45.155
Bonds
45.156
Contracts with School Districts
45.157
Examination of Bonds by Attorney General
45.158
Charges for Use of Stadium
45.159
Depository
45.160
Tax Exemption
45.161
Eminent Domain
45.162
Investment of Bond Proceeds
45.163
Acceptance of Gifts
45.201
Definitions
45.202
Selection of Depository
45.203
Depository Must Be a Bank
45.204
Conflict of Interest
45.205
Term of Contract
45.206
Bid or Request for Proposal Notices
45.207
Award of Contract
45.208
Depository Contract
45.209
Investment of District Funds
45.231
Employment of Assessor and Collector
45.232
Alternate Methods of Selection Under Former Law
45.251
Definitions
45.252
Intercept Credit Enhancement Program
45.253
Limitation on Intercept Credit Enhancement
45.254
Eligibility
45.255
Application for Credit Enhancement
45.256
Investigation
45.257
Credit Enhancement Endorsement
45.258
Notice of Failure or Inability to Pay
45.259
Payment from Intercepted Funds
45.260
Bonds Not Accelerated on Failure to Pay
45.261
Reimbursement of Foundation School Program
45.262
Repeated Failure to Pay
45.263
Rules
45.301
Definitions
45.302
Establishment of Program
45.303
Limitation on Participation
45.304
Allocation of Portion of Foundation School Program Funds for Credit Enhancement
45.305
Private Matching Funds Required
45.306
Repayment
45.307
Status of Program
45.308
Rules
45.351
Applicability
45.352
Election to Revoke County Equalization Tax
45.0531
Additional Limitation: Reservation of Percentage of Permanent School Fund Value
45.0532
Limitation on Guarantee of Charter District Bonds
45.0533
Communication with Nationally Recognized Investment Rating Firm
45.0541
Eligibility of Charter District Bonds
45.0571
Charter District Bond Guarantee Reserve Fund
45.0591
Payment of Charter District Bond on Default
45.1011
Use of Bond Proceeds for School Safety Compliance
45.1105
Use of Unspent General Obligation Bond Proceeds
45.2541
Intercept of Foundation School Program Appropriations as Credit Enhancement

Accessed:
Mar. 23, 2024

§ 45.004’s source at texas​.gov