Sec. 43.019. ACCOUNTING TREATMENT OF CERTAIN EXCHANGES. The State Board of Education may account for the exchange of permanent school fund securities in a closely related sale and purchase transaction in a manner in which the gain or loss on the sale is deferred as an adjustment to the book value of the security purchased, if:
(1) the security sold and the security purchased have a fixed maturity value;
(2) the board is authorized by law to invest the permanent school fund in the security purchased;
(3) the sale is made in clear contemplation of reinvesting substantially all of the proceeds;
(4) substantially all of the proceeds are reinvested;
(5) the transaction is completed within a reasonable time after the sale, not to exceed 30 business days; and
(6) the transaction results in an improvement in effective income yield, taking into consideration the deferral of any gain or loss on the sale.
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