Sec. 43.007. PURCHASE AND SALE OR EXCHANGE OF SECURITIES. (a) The State Board of Education may authorize the purchase of all of the types of securities in which it is authorized by law to invest the permanent school fund in either registered or negotiable form. The board may authorize the reissue of those securities held at any time for the account of the permanent school fund in either registered or negotiable form. The State Board of Education may authorize the sale of any of the securities held for the account of the permanent school fund and reinvest the proceeds of sale for the fund and may authorize the exchange of any of the securities held for the account of the permanent school fund.
(b) In making purchases, sales, exchanges, and reissues, the State Board of Education shall exercise the judgment and care under the circumstances then prevailing that persons of ordinary prudence, discretion, and intelligence exercise in the management of their own affairs not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital.
(c) When any securities are sold, reissued, or exchanged as provided by Subsection (a), the custodian of the securities shall deliver the securities sold, reissued, or exchanged in accordance with the directions of the State Board of Education.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Structure Texas Statutes
Subtitle I - School Finance and Fiscal Management
Chapter 43 - Permanent School Fund and Available School Fund
Subchapter A. General Provisions
Section 43.001. Composition of Permanent School Fund and Available School Fund
Section 43.003. Investment of Permanent School Fund
Section 43.0031. Permanent School Fund Ethics Policy
Section 43.0032. Conflicts of Interest
Section 43.0033. Reports of Expenditures
Section 43.0034. Forms; Public Information
Section 43.004. Written Investment Objectives; Performance Evaluation
Section 43.005. External Investment Managers
Section 43.0051. Transfers to Real Estate Special Fund Account of the Permanent School Fund
Section 43.0052. Quarterly Reports
Section 43.006. Investment Management
Section 43.007. Purchase and Sale or Exchange of Securities
Section 43.009. Prepayment of Certain Bonds Held by the Permanent School Fund
Section 43.010. Default of School District Securities Held by the Permanent School Fund
Section 43.011. Authorized Refunding of Defaulted School Bonds
Section 43.012. Refunding Other Defaulted Obligations
Section 43.014. Duties of Comptroller
Section 43.015. Duties of Comptroller
Section 43.016. Use of Available School Fund
Section 43.018. Participation in Fully Secured Securities Loan Programs