Texas Special District Local Laws Code - Section 8501.258. Sinking Fund: In General
Legal Research Home >
Texas Laws > Special District Local Laws Code > Texas Special District Local Laws Code - Section 8501.258. Sinking Fund: In General
§ 8501.258. SINKING FUND: IN GENERAL. (a) A resolution
or order authorizing the issuance of obligations under this chapter
must provide for the creation of a sinking fund. Amounts sufficient
to pay the principal of and interest on the obligations shall be
paid into the fund from the revenue pledged to the payment of the
obligations. The payments into the fund shall be made monthly as
the revenue is collected.
(b) In the manner provided by this chapter, the money in the
sinking fund shall be applied, at or before maturity of the
obligations, solely to:
(1) the payment of interest on the obligations for the
payment of which the fund is created; and
(2) the retirement of the obligations.
(c) A resolution or order authorizing the issuance of
obligations under this chapter must provide that the revenue from
which the obligations are to be paid and that is pledged to the
payment of the obligations shall be:
(1) set apart and paid into the sinking fund monthly as
the revenue accrues and is received; and
(2) disbursed in the manner provided by this chapter.
(d) In determining the amount of revenue to be set apart,
the board shall provide that the amount to be set apart and paid
into the sinking fund in any year shall be not less than a fixed
amount. The fixed amount must be at least sufficient to:
(1) provide for the payment of the principal of and
interest on all obligations maturing and becoming payable in the
year; and
(2) create a surplus or margin of 10 percent in excess
of the amount needed under Subdivision (1).
Acts 2003, 78th Leg., ch. 1277, § 1, eff. April 1, 2005.
Section: 8501.251 8501.252 8501.253 8501.254 8501.255 8501.256 8501.257 8501.258 8501.259 8501.260 8501.261 8501.262 8501.263 8501.264 8501.265
Last modified: August 11, 2007
|
