Texas Education Code - Section 45.108. Borrowing Money For Current Maintenance Expenses
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§ 45.108. BORROWING MONEY FOR CURRENT MAINTENANCE
EXPENSES. (a) Independent or consolidated school districts may
borrow money for the purpose of paying maintenance expenses and may
evidence those loans with negotiable notes, except that the loans
may not at any time exceed 75 percent of the previous year's income.
The notes may be payable from and secured by a lien on and pledge of
any available funds of the district, including proceeds of a
maintenance tax. The term "maintenance expenses" or "maintenance
expenditures" as used in this section means any lawful expenditure
of the school district other than payment of principal of and
interest on bonds. The term includes all costs incurred in
connection with environmental cleanup and asbestos cleanup and
removal programs implemented by school districts or in connection
with the maintenance, repair, rehabilitation, or replacement of
heating, air conditioning, water, sanitation, roofing, flooring,
electric, or other building systems of existing school properties.
Notes issued pursuant to this section may be issued to mature in not
more than 20 years from their date. Notes issued for a term longer
than one year must be treated as "debt" as defined in Section
26.012(7), Tax Code.
(b) Notes may be issued under this section only after a
budget has been adopted for the current school year.
(c) Notes issued under this section must be authorized by
resolution adopted by a majority vote of the board of trustees,
signed by the president or vice president and attested by the
secretary of the board.
(d) A note issued under this section may contain a
certification that it is issued pursuant to and in compliance with
this section and pursuant to a resolution adopted by the board of
trustees. The certification is sufficient evidence that the note
is a valid obligation of the district.
Added by Acts 1995, 74th Leg., ch. 260, § 1, eff. May 30, 1995.
Amended by Acts 1999, 76th Leg., ch. 396, § 1.35, eff. Sept. 1,
1999.
Section: 45.101 45.102 45.103 45.104 45.105 45.106 45.107 45.108 45.109 45.110 45.111 45.112 45.151 45.152 45.153
Last modified: August 10, 2007
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