Texas § ED.52.17 - INTEREST AND SINKING FUNDS

§ ED.52.17. INTEREST AND SINKING FUNDS

INTEREST AND SINKING FUNDS. (a) Each fiscal year a sufficient portion of the funds received by the board as repayment of student loans granted under this chapter, as interest on the loans, and as other available funds relating to the student loan program shall be deposited in the state treasury in the Texas college interest and sinking fund or a board interest and sinking fund to: (1) pay the interest and principal coming due during the next fiscal year on all outstanding bonds issued under this chapter that are secured by money in, as applicable, the Texas college interest and sinking fund or a board interest and sinking fund; and (2) establish and maintain any reserves required by the board resolution authorizing the issuance of the bonds. (a-1) With respect to any bonds that remain outstanding under this chapter, the board may, subject to the terms of the applicable board resolution authorizing the issuance of those bonds: (1) reduce, eliminate, or replace any reserve portion of the Texas college interest and sinking fund or a board interest and sinking fund; and (2) apply any excess money in accordance with Subsection (b). (b) If in any year funds are received in excess of the foregoing requirements, then the excess may be: (1) deposited in the Texas Opportunity Plan Fund, the student loan auxiliary fund, or a board interest and sinking fund; (2) used to pay any costs of the board related to the operation of the student loan program; (3) used for any lawful purpose related to the student loan program; or (4) used for the same purposes and upon the same terms and conditions prescribed for the proceeds derived from the sale of the bonds. (c) If funds received by the board in any fiscal year as repayment of student loans and as interest on the loans are insufficient to pay the interest coming due and the principal maturing on the bonds during the next fiscal year as described by Subsection (a), the comptroller shall transfer into the Texas college interest and sinking fund and each board interest and sinking fund out of the first money coming into the treasury that is not otherwise appropriated by the constitution an additional amount sufficient to pay that interest and principal. (d) The resolution authorizing the issuance of the bonds may provide for the deposit, from bond proceeds, of not more than 36 months' interest, and may provide for the use of bond proceeds as a reserve for the payment of principal of and interest on the bonds. (e) Amounts paid to the board by the federal Lender's Special Allowance program may: (1) be deposited in: (A) the Texas college interest and sinking fund; or (B) a board interest and sinking fund; or (2) be used by the board for the administration of student loan and grant programs administered by the board, including the making of grants under Subchapter M , Chapter 56 . (f) Repealed by Acts 2013, 83rd Leg., R.S., Ch. 1155, Sec. 62(5), eff. September 1, 2013. Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff. Sept. 1, 1971. Amended by Acts 1985, 69th Leg., ch. 518, Sec. 1, eff. June 12, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 4, Sec. 13.05, eff. Aug. 22, 1991; Acts 1993, 73rd Leg., ch. 571, Sec. 7, eff. Aug. 30, 1993; Acts 1997, 75th Leg., ch. 1423, Sec. 5.10, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1420, Sec. 8.214, eff. Sept. 1, 2001. Amended by: Acts 2005, 79th Leg., Ch. 1181 (S.B. 1227 ), Sec. 4, eff. September 1, 2005. Acts 2007, 80th Leg., R.S., Ch. 1334 (S.B. 1640 ), Sec. 6(a), eff. September 1, 2007. Acts 2013, 83rd Leg., R.S., Ch. 1155 (S.B. 215 ), Sec. 62(5), eff. September 1, 2013.