Texas § WA.51.039 - BONDS OF MUNICIPAL DISTRICTS
Full text of Texas The Texas Constitution § WA.51.039 — BONDS OF MUNICIPAL DISTRICTS, with citation guidance and answers to common questions.
§ WA.51.039. BONDS OF MUNICIPAL DISTRICTS
BONDS OF MUNICIPAL DISTRICTS. (a) A district operating under Section 51.038 of this code may issue bonds which bear the legend "municipal bond." (b) Bonds issued in compliance with this section and with Section 51.038 of this code shall be eligible for investment of the funds of: (1) state banks, trust funds, and savings banks; (2) insurance companies, for the purpose of holding the bonds as legal reserves against liability under their contracts for insurance or for investment of an accumulated surplus; (3) counties, cities, towns, and other political bodies, for the purpose of investing the accumulated sinking fund money of those bodies; (4) the State Board of Education and the regents of The University of Texas System; and (5) trustees, receivers, administrators, and guardians administering funds under orders of a court. (c) Municipal bonds issued under this section, when in the lawful possession of any person, shall be lawful reserves, where reserves are required by law. (d) The bonds are eligible for deposit with the banking and insurance departments of Texas in all cases where deposit, pledge, or security is required by law. (e) The bonds shall be lawful security for any bank designated as an official depository for a political body under the laws of Texas. Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § WA.51.039
What does The Texas Constitution § WA.51.039 cover?
Section WA.51.039 ("BONDS OF MUNICIPAL DISTRICTS") 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 § WA.51.039?
A common citation format is "The Texas Constitution § WA.51.039" (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 § WA.51.039 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.