Texas Education Code - Section 43.019. Accounting Treatment Of Certain Exchanges
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§ 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, § 1, eff. May 30, 1995.
Section: 43.012 43.013 43.014 43.015 43.016 43.017 43.018 43.019 43.020 44.001 44.0011 44.002 44.003 44.004 44.0041
Last modified: August 10, 2007
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