Texas § GV.1471.084 - DEPOSIT OF COUNTY BONDS AS GUARANTEE

§ GV.1471.084. DEPOSIT OF COUNTY BONDS AS GUARANTEE

DEPOSIT OF COUNTY BONDS AS GUARANTEE. (a) If the commissioners court determines that an exchange cannot be made under Section 1471.083 , the court as soon as practicable shall deposit with the county treasurer to the credit of the interest and sinking fund account of the commissioners or justice precinct or road district an amount of county bonds equal to the amount of outstanding bonds of the precinct or district. (b) Before depositing the county bonds under Subsection (a), the commissioners court shall submit to the attorney general a copy of the order authorizing the deposit and the county bonds to be deposited. The county bonds may be deposited only if the attorney general issues a certificate of approval. (c) To be deposited under this section, county bonds must: (1) have the word "nonnegotiable" written across the face of the bond; and (2) state that the bonds are deposited to the credit of the interest and sinking fund account of the precinct or district named in the bonds as a guarantee of the payment of the outstanding bonds of the precinct or district that have not been exchanged. (d) Coupons attached to county bonds to be deposited must have the word "nonnegotiable" written on the coupons. (e) After deposit of the county bonds: (1) the sinking fund associated with the bonds of the precinct or district shall be transferred to the sinking fund account of the county; and (2) the commissioners court may not impose the tax approved at the election of the precinct or district authorizing the bonds. (f) The commissioners court shall pay annually the interest on the county bonds deposited under this section from taxes imposed to pay interest on the county bonds and detach the coupon used for payment. The payment shall be credited to the interest account of the precinct or district, and the court shall use that money to pay the interest on the outstanding bonds of the precinct or district. (g) From the taxes imposed to provide the sinking fund for the county bonds, the commissioners court shall set aside annually in the sinking fund the amount necessary for the retirement of the county bonds. On maturity of the county bonds, the court shall pay the bonds in full. The payment shall be credited to the sinking fund of the precinct or district, and the court shall use that money to pay in full all outstanding bonds of the precinct or district. Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.