CHAPTER 53. HIGHER EDUCATION FACILITY AUTHORITIES FOR PUBLIC SCHOOLS

State Codes and Statutes

Statutes > Texas > Education-code > Title-3-higher-education > Chapter-53-higher-education-facility-authorities-for-public-schools

EDUCATION CODE

TITLE 3. HIGHER EDUCATION

SUBTITLE A. HIGHER EDUCATION IN GENERAL

CHAPTER 53. HIGHER EDUCATION FACILITY AUTHORITIES FOR PUBLIC

SCHOOLS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 53.01. SHORT TITLE. This chapter may be cited as the

Higher Education Facility Authority for Public Schools Act.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.02. DEFINITIONS. In this chapter:

(1) "City" means an incorporated city or town in this state.

(2) "Governing body" means the council, commission, or other

governing body of a city.

(3) "Authority" means a higher education facility authority

created under this chapter.

(4) "Board" means the board of directors of an authority.

(5) "Institution of higher education" means any institution of

higher education as defined by Subdivision (8) of Section 61.003.

(6) "Educational facility" means a classroom building,

laboratory, science building, faculty or administrative office

building, or other facility used exclusively for the conduct of

the educational and administrative functions of an institution of

higher education.

(7) "Housing facility" means a single- or multi-family residence

used exclusively for housing or boarding, or housing and boarding

students, faculty, or staff members of an institution of higher

learning. The term includes infirmary and student union

building, but does not include a housing or boarding facility for

the use of a fraternity, sorority, or private club.

(8) "Bond resolution" means the resolution authorizing the

issuance of revenue bonds.

(9) "Trust indenture" means the mortgage, deed of trust, or

other instrument pledging revenue or property, or creating a

mortgage lien on property, or both, to secure the revenue bonds

issued by the authority.

(10) "Authorized charter school" means an open-enrollment

charter school that holds a charter granted under Subchapter D,

Chapter 12.

(11) "Borrower" means any of the following entities that is the

recipient of a loan made under Section 53.34:

(A) an institution of higher education;

(B) a nonprofit corporation:

(i) incorporated by and under the exclusive control of an

institution of higher education; or

(ii) incorporated and operating for the exclusive benefit of an

institution of higher education and authorized by the governing

board of the institution to enter into a transaction as a

borrower under this chapter; or

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1981, 67th Leg., p. 3067, ch. 807,

Sec. 1, eff. June 17, 1981; Acts 1983, 68th Leg., p. 860, ch.

200, Sec. 1, 2, eff. Aug. 29, 1983; Acts 1987, 70th Leg., ch.

659, Sec. 1, eff. June 18, 1987; Acts 1997, 75th Leg., ch. 1232,

Sec. 1, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1335, Sec.

4, eff. June 19, 1999; Acts 2003, 78th Leg., ch. 364, Sec. 2.02,

eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 817, Sec. 8.17,

eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 1266, Sec. 1.05,

eff. June 20, 2003; Acts 2003, 78th Leg., ch. 1310, Sec. 7, eff.

June 20, 2003.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

SUBCHAPTER B. ADMINISTRATIVE PROVISIONS

Sec. 53.11. CREATION OF AUTHORITY. When the governing body of a

city finds that it is to the best interest of the city and its

inhabitants to create a higher education facility authority, it

shall pass an ordinance creating the authority and designating

the name by which it shall be known. If the governing bodies of

two or more cities find that it is to the best interest of the

cities to create an authority to include those cities, each

governing body shall pass an ordinance creating the authority and

designating the name by which it shall be known.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.12. TERRITORY. The authority comprises only the

territory included within the boundaries of the city or cities

creating it.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.13. CORPORATE POWERS. An authority is a body politic

and corporate having the power of perpetual succession. It shall

have a seal; it may sue and be sued; and it may make, amend, and

repeal its bylaws.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.131. AUTHORITY'S EARNINGS. A private person may not

share in any of an authority's earnings.

Added by Acts 1983, 68th Leg., p. 861, ch. 200, Sec. 3, eff. Aug.

29, 1983.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.14. BOARD OF DIRECTORS. (a) The authority shall be

governed by a board of directors consisting of not less than 7

nor more than 11 members to be determined at the time of creating

the authority. The directors shall be appointed by the governing

body of the city or by the governing bodies of the cities, and

they shall serve until their successors are appointed as provided

by this section. If the authority includes more than one city,

each governing body shall appoint an equal number of directors

unless otherwise agreed by the cities.

(b) The members of the board serve for two-year terms.

appointment as a director. Directors are not entitled to

compensation for services but are entitled to reimbursement for

expenses incurred in performing such service.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 861, ch. 200,

Sec. 4, eff. Aug. 29, 1983.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.15. ORGANIZATION OF BOARD; QUORUM; EMPLOYEES; COUNSEL.

(a) The board shall elect from among its members a president and

vice president, and shall elect a secretary and a treasurer who

may or may not be directors, and may elect other officers as

authorized by the authority's bylaws. The offices of secretary

and treasurer may be combined.

(b) The president has the same right to vote on all matters as

other members of the board.

present action may be taken by a majority vote of directors

present.

(d) The board may employ a manager or executive director of the

facilities and other employees, experts, and agents as it sees

fit. It may delegate to the manager the power to employ and

discharge employees.

(e) The board may employ legal counsel.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

SUBCHAPTER C. POWERS AND DUTIES

Sec. 53.31. NO TAXING POWER. An authority has no power to tax.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.32. NO POWER OF EMINENT DOMAIN. The authority does not

have the power of eminent domain.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.33. LIMITED POWER TO ACQUIRE, OWN, AND OPERATE

EDUCATIONAL AND HOUSING FACILITIES. (a) An authority or a

nonprofit instrumentality created under Section 53.35(b) may

acquire, own, hold title to, lease, or operate an educational

facility or housing facility or any facility incidental,

subordinate, or related to or appropriate in connection with an

educational facility or housing facility, but only if:

(1) the facility is or will be located within the corporate

limits of the city that created the authority or nonprofit

instrumentality;

(2) the governing body of an institution of higher education

officially requests the authority or nonprofit instrumentality to

acquire and own the facility for the benefit of the institution

of higher education;

(3) the institution of higher education officially agrees to

accept, and has authority to receive legal title to, the facility

not later than the date on which any bonds or other obligations

issued to acquire the facility are paid in full; and

(4) the ownership of the facility by the authority or the

nonprofit instrumentality is approved by official action of the

governing body of:

(A) the city that created the authority or nonprofit

instrumentality;

(B) the school district in which the facility is or will be

located; and

(b) An authority or instrumentality that exercises the powers

granted by Subsection (a) may contract for the operation of the

facility by public or private entities or persons on the terms

and conditions set forth in a contract relating to the operation

of the facility.

the 78th Legislature, Regular Session, 2003, do not affect the

acquisition, ownership, construction, or improvement of a

facility, or the acquisition and ownership of land that were

approved by official action of the authority or nonprofit

corporate instrumentality before March 15, 2003, and the law in

effect immediately before the effective date of the amendment of

this section by the 78th Legislature, Regular Session, 2003, is

continued in effect for that purpose.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 862, ch. 200,

Sec. 5, eff. Aug. 29, 1983; Acts 2003, 78th Leg., ch. 1266, Sec.

1.06, eff. June 20, 2003; Acts 2003, 78th Leg., ch. 1310, Sec. 8,

eff. June 20, 2003.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.331. REFINANCING FACILITIES. The authority may

refinance any educational or housing facility acquired,

constructed, or improved.

Added by Acts 1983, 68th Leg., p. 863, ch. 200, Sec. 6, eff. Aug.

29, 1983.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.34. REVENUE BONDS. (a) An authority or a nonprofit

instrumentality created under Section 53.35(b), including an

authority or nonprofit instrumentality authorized to own

facilities under Section 53.33(a), may issue and execute revenue

bonds or other obligations to loan or otherwise provide funds to

a borrower if:

(1) the governing body of the borrower by official action

requests the issuer of the bonds or other obligations to loan the

proceeds under this subsection;

(2) the purpose of the loan is to enable the borrower to

acquire, construct, enlarge, extend, repair, renovate, or

otherwise improve an educational facility or housing facility or

any facility incidental, subordinate, or related to or

appropriate in connection with an educational facility or housing

facility, or for acquiring land to be used for those purposes, or

to create operating and debt service reserves for and to pay

issuance costs related to the bonds or other obligations; and

(3) under the terms of the loan, and unless a mortgage lien

granted to secure the loan is in default, the ownership of the

facility is required to be at all times under the exclusive

control, and held for the exclusive benefit, of the borrower.

(b) In issuing revenue bonds or other obligations under this

chapter, the issuer of the bonds or other obligations is

considered to be acting on behalf of the city by which it was

created.

be payable from and secured by a pledge of the revenues, income,

or assets pledged for the purpose by the borrower. The bonds or

other obligations may be additionally secured by a mortgage, deed

of trust, or chattel mortgage on real or personal property, or on

both real and personal property, if granted by the borrower.

(d) A facility financed with the proceeds of a loan or loans

made to a borrower under Subsection (a) is not required to be

located within the corporate limits of the city that created the

issuer of the bonds or other obligations.

(e) An authority or a nonprofit instrumentality that is

authorized to acquire and own educational facilities and housing

facilities under Section 53.33(a) may issue and execute revenue

bonds and other obligations for the purpose of acquiring, owning,

and operating the educational and housing facilities, to create

operating reserves for the facilities, and to create debt service

reserves for and to pay issuance costs related to the bonds or

other obligations.

(f) Bonds or other obligations issued under Subsection (e) shall

be payable from and secured by a pledge of all or any part of the

gross or net revenues to be derived from the operation of the

educational facilities and housing facilities being acquired and

any other revenues, income, or assets, including the revenues and

income of the educational facilities or housing facilities

previously acquired or subsequently to be acquired. The bonds or

other obligations may be additionally secured by a mortgage, deed

of trust, or chattel mortgage on real or personal property, or on

both real and personal property, if granted by the authority or

nonprofit instrumentality issuing the bonds or other obligations.

(g) The changes in law made by the amendment of this section by

the 78th Legislature, Regular Session, 2003, affect and apply

only to transactions involving bonds or other obligations that

are issued or executed under this chapter on or after March 15,

2003. Bonds or other obligations that are issued or executed

under this chapter before March 15, 2003, are governed by the law

in effect immediately before the amendment of this section by the

78th Legislature, Regular Session, 2003, and that former law is

continued in effect for that purpose.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 863, ch. 200,

Sec. 7, eff. Aug. 29, 1983; Acts 1997, 75th Leg., ch. 1232, Sec.

2, eff. Sept. 1, 1997; Acts 2003, 78th Leg., ch. 1266, Sec. 1.07,

eff. June 20, 2003; Acts 2003, 78th Leg., ch. 1310, Sec. 9, eff.

June 20, 2003.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.35. ISSUANCE OF BONDS; PROCEDURE; ETC. (a) The bonds

shall be authorized by resolution adopted by a majority vote of a

quorum of the board. Bonds authorized under this section shall

be issued in accordance with Chapter 1201, Government Code. The

bonds shall mature serially or otherwise in not to exceed 50

years. The rate of interest to be borne by the bonds shall not

exceed the maximum rate prescribed by Chapter 1204, Government

Code.

(b) In addition to or in lieu of establishing an authority under

the provisions of this chapter, the governing body of a city or

cities may request or order created one or more nonprofit

corporations to act on its behalf and as its duly constituted

authority and instrumentality to exercise the powers granted to

an authority under the provisions of Sections 53.33 and 53.34.

If a nonprofit corporation is created for such purposes or agrees

to such request, the directors thereof shall thereafter be

appointed and be subject to removal by the governing body of the

city or cities. In addition to the powers granted under, and

subject to the limitations provided by, Sections 53.33 and 53.34,

the corporation shall have all powers granted under the Texas

Non-Profit Corporation Act for the purpose of aiding institutions

of higher education in providing educational facilities and

housing facilities and facilities incidental, subordinate, or

related thereto or appropriate in connection therewith. In

addition to Sections 53.33 and 53.34 and the Texas Non-Profit

Corporation Act, as amended (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes), Sections 53.131, 53.14, 53.15, 53.31,

53.32, 53.331, 53.34, 53.35, 53.38, 53.40, and 53.41 of this code

apply to and govern such corporation and its procedures, bonds,

and other obligations.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 1983, 68th Leg., p. 863, ch. 200,

Sec. 8, eff. Aug. 29, 1983; Acts 1987, 70th Leg., ch. 659, Sec.

2, eff. June 18, 1987; Acts 2001, 77th Leg., ch. 1420, Sec.

8.216, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1266, Sec.

1.08, eff. June 20, 2003; Acts 2003, 78th Leg., ch. 1310, Sec.

10, eff. June 20, 2003.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

849, Sec. 1, eff. June 19, 2009.

Sec. 53.351. BONDS FOR OPEN-ENROLLMENT CHARTER SCHOOL

FACILITIES. (a) The Texas Public Finance Authority shall

establish a nonprofit corporation to act on behalf of the state,

as its duly constituted authority and instrumentality, to issue

revenue bonds for authorized open-enrollment charter schools for

the acquisition, construction, repair, or renovation of

educational facilities of those schools.

(b) The Texas Public Finance Authority shall appoint the

directors of the corporation in consultation with the

commissioner of education. Directors serve without compensation

but are entitled to reimbursement for travel expenses incurred in

attending board meetings. The board shall meet at least once a

year.

Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's

Texas Civil Statutes), or granted to a nonprofit corporation

under the Business Organizations Code, for the purpose of aiding

authorized open-enrollment charter schools in providing

educational facilities. In addition, Sections 53.131, 53.15,

53.31, 53.32, 53.331, 53.34, 53.35, 53.38, 53.40, and 53.41 apply

to and govern the corporation and its procedures and bonds. The

corporation may exercise the powers granted to the governing body

of an issuer with regard to the issuance of obligations and the

execution of credit agreements under Chapter 1371, Government

Code.

(d) The corporation shall adopt rules governing the issuance of

bonds under this section.

(e) The comptroller shall establish a fund dedicated to the

credit enhancement of bonds issued by any issuer under this

subchapter for any open-enrollment charter school. The fund may

receive donations. The corporation may also use the money held

under this subsection to provide loans or other credit support

for the obligations of any open-enrollment charter school issued

by any issuer in any manner not inconsistent with the Texas

Non-Profit Corporation Act (Article 1396-1.01, Vernon's Texas

Civil Statutes), or the provisions of the Business Organizations

Code governing nonprofit corporations. The obligation of the fund

is limited to an amount equal to the balance of the fund.

(f) A revenue bond issued under this section is not a debt of

the state or any state agency, political corporation, or

political subdivision of the state and is not a pledge of the

faith and credit of any of these entities. A revenue bond is

payable solely from the revenue of the authorized open-enrollment

charter school on whose behalf the bond is issued. A revenue

bond issued under this section must contain on its face a

statement to the effect that:

(1) neither the state nor a state agency, political corporation,

or political subdivision of the state is obligated to pay the

principal of or interest on the bond; and

(2) neither the faith and credit nor the taxing power of the

state or any state agency, political corporation, or political

subdivision of the state is pledged to the payment of the

principal of or interest on the bond.

(g) An educational facility financed in whole or in part under

this section is exempt from taxation if the facility:

(1) is owned by an authorized open-enrollment charter school;

(2) is held for the exclusive benefit of the school; and

(3) is held for the exclusive use of the students, faculty, and

staff members of the school.

Added by Acts 2001, 77th Leg., ch. 1504, Sec. 32, eff. Sept. 1,

2001.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1357, Sec. 1, eff. June 15, 2007.

Sec. 53.36. BOND RESOLUTION; NOTICE; ELECTION. (a) Before

authorizing the issuance of bonds, other than refunding bonds,

the board shall cause a notice to be issued stating that it

intends to adopt a resolution authorizing the issuance of the

bonds, the maximum amount thereof, and the maximum maturity

thereof. The notice shall be published once each week for two

consecutive weeks in a newspaper or newspapers having general

circulation in the authority. The first publication shall be at

least 14 days prior to the day set for adopting the bond

resolution.

(b) If, prior to the day set for the adoption of the bond

resolution, there is presented to the secretary or president of

the board a petition signed by not less than 10 percent of the

qualified voters residing in the city or cities comprising the

authority, who own taxable property in the authority and who have

duly rendered it for taxation to the city in which such property

is located or situated, requesting an election on the proposition

for the issuance of the bonds, the bonds shall not be issued

unless an election is held and a majority vote is in favor of the

bonds. The election shall be called and held in accordance with

the procedure prescribed in Chapter 1251, Government Code, with

the board and the president and secretary performing the

functions there assigned to the governing body of the city, the

mayor and city secretary, respectively. If no such petition is

filed, the bonds may be issued without an election. However, the

board may call an election on its own motion without the filing

of the petition.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 2001, 77th Leg., ch. 1420, Sec.

8.217, eff. Sept. 1, 2001.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.37. JUNIOR LIEN BONDS; PARITY BONDS. Bonds constituting

a junior lien on the net revenue or properties may be issued

unless prohibited by the bond resolution or trust indenture.

Parity bonds may be issued under conditions specified in the bond

resolution or trust indenture.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.38. RESERVES FOR OPERATING AND OTHER EXPENSES. Money

for the payment of not more than two years' interest on the bonds

and an amount estimated by the board to be required for operating

expenses during the first year of operation may be set aside for

those purposes out of the proceeds from the sale of the bonds.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.39. REFUNDING BONDS. Bonds may be issued for the

purpose of refunding outstanding bonds in the manner provided in

this chapter for other bonds, and may be exchanged by the

comptroller or sold and the proceeds applied in accordance with

the procedure prescribed by Subchapter B or C, Chapter 1207,

Government Code.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971. Amended by Acts 2001, 77th Leg., ch. 1420, Sec.

8.218, eff. Sept. 1, 2001.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.40. APPROVAL OF BONDS; REGISTRATION; NEGOTIABILITY. (a)

Bonds issued under this chapter and the record relating to their

issuance shall be submitted to the attorney general, and if the

attorney general finds that they have been issued in accordance

with this chapter and constitute valid and binding obligations of

the authority and are secured as recited therein, the attorney

general shall approve them, and they shall be registered by the

comptroller of public accounts, who shall certify the

registration thereon. Thereafter they are incontestable. The

bonds shall be negotiable and shall contain the following

provision: "The holder hereof shall never have the right to

demand payment thereof out of money raised or to be raised by

taxation." If the attorney general does not find that the bonds

have been issued in accordance with this chapter and constitute

valid and binding obligations of the authority and are secured as

recited therein, the attorney general may not approve the bonds,

and the bonds may not be registered by the comptroller.

(b) When bonds to be issued to benefit an institution of higher

education and the record relating to their issuance are submitted

to the attorney general, the authority shall deliver notice of

that action to the governor, the lieutenant governor, the speaker

of the house of representatives, and the Legislative Budget

Board. The notice must include the amount of the bonds to be

issued and a description of the facilities to be financed from

the bond proceeds.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

849, Sec. 2, eff. June 19, 2009.

Sec. 53.41. AUTHORIZED INVESTMENTS. All bonds issued under this

chapter are legal and authorized investments for all banks,

savings banks, trust companies, building and loan associations,

savings and loan associations, and insurance companies of all

kinds and types, and for the interest and sinking funds and other

public funds of any issuer. The bonds are also eligible and

lawful security for all deposits of public funds of the State of

Texas and of any issuer, to the extent of the value of the bonds,

when accompanied by any unmatured interest coupons appurtenant to

them.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.42. INVESTMENT OF FUNDS; SECURITY. To the extent it is

applicable, the law as to the security for and the investment of

funds, applicable to cities, controls the investment of funds

belonging to authority. The bond resolution or the indenture or

both may further restrict the making of investments. The

authority may invest the proceeds of its bonds, until the money

is needed, in the direct obligations of or obligations

unconditionally guaranteed by the United States, to the extent

authorized in the bond resolution or indenture or in both.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.43. DEPOSITORIES. The authority may select a depository

or depositories according to the procedures provided by law for

the selection of city depositories, or it may award its

depository contract to the same depository or depositories

selected by the city or cities and on the same terms.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.44. OPERATION OF FACILITIES; RATES CHARGED; RESERVE

FUNDS. (a) The facilities may be operated by the authority

without the intervention of private profit for the use and

benefit of the public, or may be leased to an institution of

higher education, or may be operated by the institution under a

contract with the authority, the lease or contract to be in

effect until any revenue bonds issued in connection with it have

been finally retired.

(b) The board shall charge rates for the use of the facilities,

or for their lease or operation, that are fully sufficient to pay

all expenses in connection with the ownership, operation, and

upkeep of the facilities, to pay the interest on the bonds as it

becomes due, to create a sinking fund to pay the bonds as they

become due, and to create and maintain a bond reserve fund and

other funds and reserves that may be provided in the bond

resolution or trust indenture. The bond resolution or trust

indenture may prescribe systems, methods, routines, and

procedures under which the facilities shall be operated.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.45. TRANSACTIONS WITH OTHER AGENCIES AND PERSONS. The

authority may borrow money and accept grants from, and enter into

contracts, leases, or other transactions with the United States,

the State of Texas, any municipal corporation in the state, and

any public or private person or corporation resident or

authorized to do business in the state.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.46. AUTHORITY EXEMPT FROM TAXATION. Because the

property owned by authority will be held for educational purposes

only and will be devoted exclusively to the use and benefit of

the students, faculty, and staff members of an accredited

institution of higher education, it is exempt from taxation of

every character.

Acts 1971, 62nd Leg., p. 3072, ch. 1024, art. 1, Sec. 1, eff.

Sept. 1, 1971.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

Sec. 53.48. BONDS FOR AUTHORIZED CHARTER SCHOOLS. In the same

manner that a corporation may issue and execute bonds or other

obligations under this chapter for an institution of higher

education, a corporation created under Section 53.35(b) may issue

and execute bonds or other obligations to finance or refinance

educational facilities to be used by an authorized charter

school.

Added by Acts 1995, 74th Leg., ch. 18, Sec. 1, eff. Aug. 28,

1995. Amended by Acts 1997, 75th Leg., ch. 1232, Sec. 3, eff.

Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1335, Sec. 5, eff. June

19, 1999; Acts 2003, 78th Leg., ch. 1266, Sec. 1.09, eff. June

20, 2003; Acts 2003, 78th Leg., ch. 1310, Sec. 11, eff. June 20,

2003.

Reenacted and amended by Acts 2005, 79th Leg., Ch.

641, Sec. 1, eff. September 1, 2005.

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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