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Texas Labor Code - Section 203.255. Bond Proceeds

Legal Research Home > Texas Laws > Labor Code > Texas Labor Code - Section 203.255. Bond Proceeds

§ 203.255. BOND PROCEEDS.  (a) The proceeds of bonds 
issued by the authority under this subchapter may be deposited with 
a trustee selected by the authority and the commission or held by 
the comptroller in a dedicated trust fund outside the state 
treasury in the custody of the comptroller.
	(b)  Bond proceeds, including investment income, shall be 
held in trust for the exclusive use and benefit of the commission.  
The commission may use the proceeds to:
		(1)  repay the principal and interest of previous 
advances from the federal trust fund;
		(2)  pay unemployment benefits by depositing the 
proceeds in the unemployment compensation fund, as defined in 
Subchapter B;
		(3)  pay the costs of issuing the bonds;                                      
		(4)  provide a bond reserve;  and                                             
		(5)  pay capitalized interest on the bonds for the 
period determined necessary by the commission, not to exceed two 
years.
	(c)  Any excess money remaining after the purposes for which 
the bonds were issued is satisfied may be used to purchase or redeem 
outstanding bonds. 
	(d)  If there are no outstanding bonds or bond interest to be 
paid, the remaining proceeds shall be transferred to the 
unemployment compensation fund.

Added by Acts 2003, 78th Leg., ch. 317, § 5, eff. June 18, 2003;  
Acts 2003, 78th Leg., ch. 817, § 6.05, eff. June 20, 2003.

Last modified: August 11, 2007