Texas Labor Code - Section 203.255. Bond Proceeds
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Texas Laws > Labor Code > Texas Labor Code - Section 203.255. Bond Proceeds
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§ 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
(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
(c) Any excess money remaining after the purposes for which
the bonds were issued is satisfied may be used to purchase or redeem
(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