Tex. Educ. Code Section 45.0571
Charter District Bond Guarantee Reserve Fund

(a)

The charter district bond guarantee reserve fund is a special fund in the state treasury outside the general revenue fund. The following amounts shall be deposited in the fund:

(1)

money due from a charter district as provided by Subsection (b); and

(2)

interest earned on balances in the fund.

(a-1)

Notwithstanding Chapter 404 (State Treasury Operations of Comptroller), Government Code, the charter district bond guarantee reserve fund is managed by the board in the same manner that the permanent school fund is managed by the board. The board may invest money in the charter district bond guarantee reserve fund in accordance with the investment standard described by Section 404.024 (Authorized Investments)(j), Government Code, and the board’s investment is not subject to any other limitation or requirement provided by Section 404.024 (Authorized Investments), Government Code.

(a-2)

The board shall adjust the investment portfolio of charter district bond guarantee reserve fund money periodically to ensure that the balance of the fund is sufficient to meet the cash flow requirements of the fund.

(b)

Subject to Subsection (c), a charter district that has a bond guaranteed as provided by this subchapter must remit to the commissioner, for deposit in the charter district bond guarantee reserve fund, an amount equal to 20 percent of the savings to the charter district that is a result of the lower interest rate on the bond due to the guarantee by the permanent school fund. The amount due under this section shall be paid on receipt by the charter district of the bond proceeds. The commissioner shall adopt rules to determine the amount due under this section.

(c)

Subsection (b) does not apply if, at the time the charter district receives the proceeds of the bond guaranteed as provided by this subchapter, the balance of the charter district bond guarantee reserve fund is at least equal to three percent of the total amount of outstanding guaranteed bonds issued by charter districts.

(d)

Each year, the commissioner shall:

(1)

review the condition of the bond guarantee program and the amount that must be deposited in the charter district bond guarantee reserve fund from charter districts; and

(2)

determine if charter districts should be required to submit a greater percentage of the savings resulting from the guarantee.

(e)

The commissioner shall make recommendations to the legislature based on the review under Subsection (d).
Added by Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 59.10, eff. September 28, 2011.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 402 (S.B. 1480), Sec. 5, eff. September 1, 2017.

Source: Section 45.0571 — Charter District Bond Guarantee Reserve Fund, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­45.­htm#45.­0571 (accessed Jun. 5, 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 45.032
Revenue Bonds 45.0032
Components of Maintenance and Operations Tax 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
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Accessed:
Jun. 5, 2024

§ 45.0571’s source at texas​.gov