Tex.
Educ. Code Section 53B.48
Qualified Nonprofit Corporation Acting for or on Behalf of Two or More Cities
(a)
A qualified nonprofit corporation described by Section 53B.47 (Guaranteed Student Loans and Alternative Education Loans; Bonds for the Purchase of Education Loan Notes)(e) that has agreed to exercise the powers enumerated under Section 53B.47 (Guaranteed Student Loans and Alternative Education Loans; Bonds for the Purchase of Education Loan Notes) for and on behalf of two or more cities may withdraw from acting for and on behalf of any of those cities if the governing body of the applicable city consents to the withdrawal and rescinds its earlier request that the nonprofit corporation act for and on behalf of the city. A nonprofit corporation that completes a withdrawal described by this subsection continues to act under the authority of Section 53B.47 (Guaranteed Student Loans and Alternative Education Loans; Bonds for the Purchase of Education Loan Notes)(e) for and on behalf of the remaining city or cities.(b)
Following the qualified nonprofit corporation’s withdrawal under this section from acting for and on behalf of a city:(1)
the applicable city is no longer:(A)
entitled to participate in the appointment or removal of a member of the board of directors of the nonprofit corporation under Section 53B.47 (Guaranteed Student Loans and Alternative Education Loans; Bonds for the Purchase of Education Loan Notes)(e); or(B)
authorized or required to participate in the approval of the issuance of revenue bonds or other borrowings by the nonprofit corporation under Section 53B.47 (Guaranteed Student Loans and Alternative Education Loans; Bonds for the Purchase of Education Loan Notes)(a); and(2)
members of the board of directors of the nonprofit corporation who were appointed by that city are no longer considered to be qualified directors of the nonprofit corporation.(c)
A qualified nonprofit corporation that withdraws from acting for and on behalf of a city may change the size of its board of directors to reflect the withdrawal, provided that its bylaws at all times require at least three directors. The governing body or bodies of the city or cities for and on behalf of which the nonprofit corporation continues to act retain the power to:(1)
appoint and remove the directors of the nonprofit corporation as provided by Section 53B.47 (Guaranteed Student Loans and Alternative Education Loans; Bonds for the Purchase of Education Loan Notes)(e); and(2)
approve the issuance of revenue bonds or other borrowings by the nonprofit corporation as provided by Section 53B.47 (Guaranteed Student Loans and Alternative Education Loans; Bonds for the Purchase of Education Loan Notes)(a).
Source:
Section 53B.48 — Qualified Nonprofit Corporation Acting for or on Behalf of Two or More Cities, https://statutes.capitol.texas.gov/Docs/ED/htm/ED.53B.htm#53B.48 (accessed Apr. 29, 2024).
