Sec. 45.112. CONTRACTS FOR INVESTMENT OF DEBT SERVICE FUNDS. (a) A school district, including a junior college district or community college district, may enter into a contract with a term not to exceed seven years to purchase investments with the proceeds of taxes levied or to be levied by the district for the purpose of paying debt service on bonds issued by the district.
(b) A contract under this section may provide for the purchase of investments at a stated yield or yields.
(c) Before entering a contract under this section, a school district must solicit and receive bids from at least three separate providers. The district must accept the qualifying bid that provides for the highest yield investments over the term of the contract.
(d) A contract under this section may provide only for the purchase of an obligation described by Section 2256.009(a)(1), Government Code, other than an obligation described by Section 2256.009(b) of that code.
Added by Acts 1999, 76th Leg., ch. 1535, Sec. 1, eff. June 19, 1999.
Structure Texas Statutes
Subtitle I - School Finance and Fiscal Management
Chapter 45 - School District Funds
Subchapter E. Miscellaneous Provisions
Section 45.101. Use of Bond Proceeds for Utility Connections
Section 45.103. Interest-Bearing Time Warrants
Section 45.104. Pledge of Delinquent Taxes as Security for Loan
Section 45.105. Authorized Expenditures
Section 45.107. Investment of Gifts, Devises, and Bequests
Section 45.108. Borrowing Money for Current Maintenance Expenses
Section 45.109. Contracts for Athletic Facilities
Section 45.110. Authorized but Unissued Bonds
Section 45.1105. Use of Unspent General Obligation Bond Proceeds
Section 45.112. Contracts for Investment of Debt Service Funds