Texas § ED.12.107 - STATUS AND USE OF FUNDS
Full text of Texas The Texas Constitution § ED.12.107 — STATUS AND USE OF FUNDS, with citation guidance and answers to common questions.
§ ED.12.107. STATUS AND USE OF FUNDS
STATUS AND USE OF FUNDS. (a) Funds received under Section 12.106 after September 1, 2001, by a charter holder: (1) are considered to be public funds for all purposes under state law; (2) are held in trust by the charter holder for the benefit of the students of the open-enrollment charter school; (3) may be used only for a purpose for which a school may use local funds under Section 45.105 (c); (4) pending their use, must be deposited into a bank, as defined by Section 45.201 , with which the charter holder has entered into a depository contract; and (5) may not: (A) be pledged or used to secure loans or bonds for any other organization, including a non-charter operation or out-of-state operation conducted by the charter holder or a related party, as defined by commissioner rule adopted under Section 12.1166 ; or (B) be used to support an operation or activity not related to the educational activities of the charter holder. (b) A charter holder shall deliver to the agency a copy of the depository contract between the charter holder and any bank into which state funds are deposited. Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995. Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 7, eff. Sept. 1, 2001. Amended by: Acts 2019, 86th Leg., R.S., Ch. 631 (S.B. 1454 ), Sec. 4, eff. June 10, 2019.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § ED.12.107
What does The Texas Constitution § ED.12.107 cover?
Section ED.12.107 ("STATUS AND USE OF FUNDS") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § ED.12.107?
A common citation format is "The Texas Constitution § ED.12.107" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § ED.12.107 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.