Texas § ED.45.0571 - CHARTER DISTRICT BOND GUARANTEE RESERVE FUND

§ ED.45.0571. CHARTER DISTRICT BOND GUARANTEE RESERVE FUND

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 , 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 (j), Government Code, and the board's investment is not subject to any other limitation or requirement provided by Section 404.024 , 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.