Texas Education Code - Section 52.17. Interest And Sinking Funds
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§ 52.17. INTEREST AND SINKING FUNDS. (a) Each fiscal
year a sufficient portion of the funds received by the board as
repayment of student loans granted under this chapter, as interest
on the loans, and as other available funds relating to the student
loan program shall be deposited in the state treasury in the Texas
college interest and sinking fund or a board interest and sinking
fund to pay the interest and principal coming due during the ensuing
fiscal year and to establish and maintain a reserve in the interest
and sinking fund equal to the average annual principal and interest
requirements of all outstanding bonds issued under this chapter
that are secured by funds in the Texas college interest and sinking
fund or a board interest and sinking fund.
(b) If in any year funds are received in excess of the
foregoing requirements, then the excess may be:
(1) deposited in the Texas Opportunity Plan Fund, the
student loan auxiliary fund, or a board interest and sinking fund;
(2) used to pay any costs of the board related to the
operation of the student loan program;
(3) used for any lawful purpose related to the student
loan program; or
(4) used for the same purposes and upon the same terms
and conditions prescribed for the proceeds derived from the sale of
the bonds.
(c) In the event that funds received by the board in any
fiscal year as repayment of student loans and as interest on the
loans are insufficient to pay the interest coming due and the
principal maturing on the bonds during the ensuing fiscal year, the
comptroller shall transfer into the Texas college interest and
sinking fund and each board interest and sinking fund out of the
first money coming into the treasury, which is not otherwise
appropriated by the constitution, an additional amount sufficient
to pay the interest coming due and the principal maturing on the
bonds during the ensuing fiscal year.
(d) The resolution authorizing the issuance of the bonds may
provide for the deposit, from bond proceeds, of not more than 24
months' interest, and may provide for the use of bond proceeds as a
reserve for the payment of principal of and interest on the bonds.
(e) Amounts paid to the board by the federal Lender's
Special Allowance program may:
(1) be deposited in:
(A) the Texas college interest and sinking fund;
or
(B) a board interest and sinking fund; or
(2) be used by the board for the administration of
student loan and grant programs administered by the board,
including the making of grants under Subchapter M, Chapter 56.
(f) With respect to loans granted under this chapter, the
board shall file semiannually with the Bond Review Board a report on
the performance of the loans, the Texas college interest and
sinking fund, and each board interest and sinking fund. The Bond
Review Board shall review the reports filed by the board under this
subsection to assess the performance of the loans under this
chapter, the Texas college interest and sinking fund, and each
board interest and sinking fund. The filing dates and the contents
of the reports must comply with any rules adopted by the Bond Review
Board.
Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, § 1, eff. Sept.
1, 1971. Amended by Acts 1985, 69th Leg., ch. 518, § 1, eff. June
12, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 4, § 13.05, eff.
Aug. 22, 1991; Acts 1993, 73rd Leg., ch. 571, § 7, eff. Aug. 30,
1993; Acts 1997, 75th Leg., ch. 1423, § 5.10, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 1420, § 8.214, eff. Sept. 1,
2001; Acts 2005, 79th Leg., ch. 1181, § 4, eff. Sept. 1, 2005.
Section: 52.04 52.11 52.12 52.13 52.14 52.15 52.16 52.17 52.18 52.19 52.20 52.31 52.32 52.321 52.33
Last modified: August 10, 2007
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