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Statutes > Texas > Natural-resources-code > Title-7-resources-programs > Chapter-164-veterans-financial-assistance-program

NATURAL RESOURCES CODE

TITLE 7. RESOURCES PROGRAMS

CHAPTER 164. VETERANS' FINANCIAL ASSISTANCE PROGRAM

Sec. 164.001. PURPOSE AND POLICY. (a) The legislature declares

that it is the policy of the state to provide financial

assistance to veterans of the state in recognition of their

service to this state and the United States and to honor veterans

with a final resting place and with lasting memorials that

commemorate their service.

(b) The legislature declares that existing mechanisms for

implementing the policy stated in Subsection (a) of this section

may be enhanced by adoption of this chapter and implementation of

the financial assistance programs authorized by this chapter.

(c) The legislature finds that this chapter and the financial

assistance programs authorized by this chapter are in furtherance

of a public purpose.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 981, Sec. 1, eff. Nov.

6, 2001.

Sec. 164.002. DEFINITIONS. (a) In this chapter:

(1) "Board" means the Veterans' Land Board.

(2) "Bonds" means the revenue bonds issued by the board under

this chapter.

(3) "Financial assistance" means the purchase of land, the sale

of land to veterans, and the making of home mortgage loans to

veterans, as provided for in this chapter.

(4) "Home" means a dwelling within this state in which a veteran

intends to reside as the veteran's principal residence.

(5) "Lending institution" means a bank, trust company, savings

bank, national banking association, savings and loan association,

building and loan association, mortgage banker, mortgage company,

credit union, life insurance company, or other financial

institution that customarily provides service or aids in the

financing of mortgages on single-family residential housing that

has been approved for participation by the board, including a

holding company for a lending institution.

(6) "Veteran" has the meaning assigned by Section 161.001.

(7) "Veterans cemetery" means a burial ground operated solely

for the burial of veterans and their eligible relatives.

(8) "Veterans home" means a life care facility, retirement home,

retirement village, home for the aging, or other facility that

furnishes shelter, food, medical attention, nursing services,

medical services, social activities, or other personal services

or attention to veterans.

(b) Repealed by Acts 2003, 78th Leg., ch. 1145, Sec. 5.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 5, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 2, eff. Nov. 6,

2001; Acts 2003, 78th Leg., ch. 1145, Sec. 4, 5, eff. June 20,

2003.

Sec. 164.003. FINANCIAL ASSISTANCE PROGRAMS. The board may

establish one or more programs for providing financial assistance

to veterans under this chapter. A program may be limited to the

purpose of purchasing land, selling land to veterans, making home

mortgage loans to veterans, or providing one or more veterans

homes or veterans cemeteries. To the extent a financial

assistance program is for the purpose of purchasing land or

selling land to veterans, the program shall be administered, to

the extent consistent with this chapter and otherwise deemed

practicable and desirable by the board, in accordance with the

board's Veterans' Land Program. To the extent a financial

assistance program is for the purpose of making home mortgage

loans to veterans, the program shall be administered, to the

extent consistent with this chapter and otherwise deemed

practicable and desirable by the board, in accordance with the

board's Veterans' Housing Assistance Program.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 6, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 3, eff. Nov. 6,

2001.

Sec. 164.004. RULES. The board shall adopt rules providing for

the administration of its financial assistance programs

established under this chapter, including rules concerning:

(1) the purchasing of land and the selling of land to veterans;

(2) the making of home mortgage loans to veterans;

(3) the use of insurance on land and homes as deemed appropriate

by the board, as further security for land sold or home mortgage

loans made;

(4) the criteria for approving lending institutions

participating in programs;

(5) the terms and conditions of a contract made with a lending

institution;

(6) the construction, acquisition, ownership, operation,

maintenance, enlargement, improvement, or furnishing or equipping

of veterans homes or veterans cemeteries; and

(7) other matters as the board deems appropriate.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 7, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 4, eff. Nov. 6,

2001.

Sec. 164.005. RIGHTS AND POWERS OF BOARD. (a) In connection

with the administration of its financial assistance programs

under this chapter, the board has and may exercise, to the extent

not inconsistent with this chapter, all the rights and powers

granted to it by Chapters 161 and 162 of this code relating to

the administration of the board's Veterans' Land Program and

Veterans' Housing Assistance Program.

(b) In administering any of the board's financial assistance

programs relating to veterans homes, the board, or the board in

conjunction with other state or federal agencies, may acquire by

purchase, gift, devise, lease, or a combination of those methods,

construct, operate, enlarge, improve, furnish, or equip one or

more veterans homes.

(c) The board may enter into an agreement with any person for

the management or operation of all or part of a veterans home or

all or part of a veterans cemetery. The board may delegate to the

manager the authority to manage the veterans home or veterans

cemetery and to employ and discharge employees.

(d) The board may not authorize the use of any veterans home in

a manner that would entitle the United States to recover any

amounts pursuant to 38 U.S.C. Section 8136, as amended, or any

successor statute.

(e) On terms and conditions acceptable to it, the board may

accept and administer gifts, grants, or donations for the

support, acquisition, construction, operation, enlargement,

improvement, furnishing, or equipping of veterans homes or

veterans cemeteries and may enter into agreements with a

nonprofit corporation for the solicitation, receipt, and

disbursement of the gifts, grants, or donations.

(f) The board, the chairman of the Texas Veterans Commission,

and two representatives of the veterans community selected by the

chairman of the Texas Veterans Commission shall:

(1) establish the guidelines for determining:

(A) the location and size of veterans cemeteries; and

(B) the eligibility for burial in a veterans cemetery; and

(2) select up to seven locations across the state for veterans

cemeteries.

(g) In administering any of the board's financial assistance

programs relating to veterans cemeteries, the board, or the board

in conjunction with other state or federal agencies, may plan and

design, operate, maintain, enlarge, or improve veterans

cemeteries.

(h) Of the funds available in the veterans' land fund, the

veterans' housing assistance fund, and the veterans' housing

assistance fund II that may be used for veterans cemeteries, the

board may spend not more than $7 million each fiscal year to plan

and design, operate, maintain, enlarge, or improve veterans

cemeteries. The board may not use funds from the veterans' land

fund, the veterans' housing assistance fund, or the veterans'

housing assistance fund II to acquire land to be used for a

veterans cemetery.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 8, eff. May

9, 1997; Acts 1999, 76th Leg., ch. 134, Sec. 6, eff. May 20,

1999; Acts 2001, 77th Leg., ch. 981, Sec. 5, eff. Nov. 6, 2001.

Sec. 164.0051. LOCATION OF VETERANS HOMES. To the extent

practicable, when determining the location of new veterans homes

in this state, the board shall consider:

(1) the geographic proximity to existing state veterans homes

with special regard to areas not served by state veterans homes;

(2) the economic impact of the veterans home on the local

community and the veterans program; and

(3) the areas with a significant veteran population, without

regard to international boundaries.

Added by Acts 2001, 77th Leg., ch. 746, Sec. 1, eff. June 13,

2001.

Sec. 164.006. ISSUANCE OF BONDS. For the issuance of bonds

under this chapter, the board may exercise the authority granted

to the governing body of an issuer with regard to issuance of

obligations under Chapter 1371, Government Code, to the extent

that it is not inconsistent with this chapter.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.358, eff.

Sept. 1, 2001.

Sec. 164.007. CONDITIONS FOR ISSUANCE OF BONDS. (a) Bonds may

be issued in various series and issues.

(b) Bonds shall be payable as provided by the board and may

mature serially or otherwise.

(c) Bonds shall be redeemable before maturity or subject to

tender for purchase at the price or prices and under the terms

and conditions fixed by the board in the resolution providing for

the issuance and sale of the bonds.

(d) Bonds may bear a fixed, variable, floating, or other rate or

rates of interest or may bear no interest, as determined by the

board.

(e) Bonds may be sold at public or private sale at a price or

prices and on terms determined by the board.

(f) Bonds issued under this chapter for a purpose other than

buying back or refunding general obligation bonds issued under

Article III, Section 49-b, 49-b-1, or 49-b-2, of the Texas

Constitution may not in the aggregate exceed $1 billion.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 875, Sec. 1, eff. June

14, 2001.

Sec. 164.008. FORM OF BONDS. (a) The bonds may be issued in

the form, denominations, and manner and under the terms,

conditions, and details as provided by the board in the

resolution authorizing their existence.

(b) The bonds shall be signed and executed as provided by the

board's resolution or order authorizing the issuance of the

bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.009. SECURITY FOR THE BONDS. (a) The bonds issued

under this chapter shall be special obligations of the board. As

security for the payment of the bonds, the board may provide for

a pledge of and lien or mortgage on:

(1) the receipts of all kinds of the veterans' land fund, the

veterans' housing assistance fund, and the veterans' housing

assistance fund II determined by the board, on the basis of

facts, circumstances, and expectations at the time of issuance of

the bonds, not to be required for the payment of principal of or

interest on the general obligation bonds issued by the board to

augment the funds or to make payments with respect to principal

or interest under a bond enhancement agreement with respect to

the general obligation bonds;

(2) the assets of the veterans' land fund, the veterans' housing

assistance fund, or the veterans' housing assistance fund II

determined by the board on the basis of facts, circumstances, and

expectations at the time of issuance of the bonds not to be

required for the purposes of the fund;

(3) the payments and repayments received by the board from the

board's financial assistance provided under this chapter;

(4) other program revenues;

(5) other available revenues of the board; and

(6) one or more veterans homes.

(b) The pledge and lien or mortgage are to be provided for and

determined in accordance with the resolution of the board

providing for the issuance and sale of the bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1993, 73rd Leg., ch. 242, Sec. 3.02; Acts

1997, 75th Leg., ch. 71, Sec. 9, eff. May 9, 1997; Acts 1999,

76th Leg., ch. 134, Sec. 7, eff. May 20, 1999; Acts 2003, 78th

Leg., ch. 590, Sec. 1, eff. Sept. 13, 2003.

Sec. 164.010. BOND ENHANCEMENT AGREEMENTS. (a) The board may

at any time and from time to time enter into one or more bond

enhancement agreements that the board deems to be necessary or

appropriate to place the obligation of the board, as represented

by the bonds, in whole or in part, on the interest rate,

currency, cash flow, or other basis desired by the board. Bond

enhancement agreements may include, on terms and conditions

approved by the board, interest rate swap agreements, currency

swap agreements, forward payment conversion agreements,

agreements providing for payments based on levels of or changes

in interest rates or currency exchange rates, agreements to

exchange cash flows or a series of payments, or agreements

including options, puts, or calls, to hedge payment, currency,

rate, spread, or other exposure. A bond enhancement agreement is

an agreement for professional services and shall contain the

terms and conditions and be for the period that the board

approves. The cost to the board of the bond enhancement agreement

may be paid from the proceeds of the sale of the bonds to which

the bond enhancement agreement relates or from any other source,

including the revenues of the board that are available for the

purpose of paying the bonds or that may otherwise be available to

make those payments.

(b) The resolution of the board authorizing a bond enhancement

agreement may authorize one or more designated officers or

employees of the board to act on behalf of the board in entering

into and delivering the bond enhancement agreement and in

determining or setting the counterparty and terms of the bond

enhancement agreement specified in the resolution, except that

the resolution must set the maximum amount and term for the bond

enhancement agreement.

(c) Unless the board elects otherwise in its approval of a bond

enhancement agreement, the bond enhancement agreement is not a

credit agreement for purposes of Chapter 1371, Government Code,

regardless of whether the bonds relating to the bond enhancement

agreement were issued in part under that law.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 10, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 1420, Sec. 8.359, eff. Sept.

1, 2001.

Sec. 164.011. FUNDS. (a) In the resolution authorizing the

issuance of bonds, the board may make additional covenants with

respect to the bonds and the pledged revenues and may provide for

the flow of funds and the establishment, maintenance, and

investment of funds. The funds established may include an

interest and sinking fund, a reserve fund, and other funds that

will be kept and maintained by or under the direction of the

board.

(b) The board may by resolution provide for the establishment,

maintenance, and investment of additional funds into which the

board may deposit revenues from any financial assistance program

under this chapter that are not pledged to bonds, including any

gifts, grants, or donations accepted by the board for the

support, acquisition, construction, operation, enlargement,

improvement, furnishing, or equipping of veterans homes or

veterans cemeteries.

(c) Funds established by the board under this chapter are not to

be part of the State Treasury and are not subject to Subchapter

F, Chapter 404, Government Code. Any provision of this chapter or

other law that provides for the deposit of money or another thing

of value into the funds prevails over the requirements of

Subchapter F, Chapter 404, Government Code. The funds shall

remain under the control of the board but, at the direction of

the board, may be kept and held in escrow and in trust by the

comptroller on behalf of the board and the owners of the bonds

and used only as provided by this chapter.

(d) Money in a fund shall be invested in investments authorized

as provided by a resolution or order of the board.

(e) Legal title to money in a fund is in the board unless or

until paid from the fund as provided by this chapter or the

resolution authorizing the issuance of the bonds or the

establishment of the fund.

(f) The board shall select the comptroller or one or more

commercial banks, depository trust companies, or other entities

to serve as custodian of the cash or securities of a fund and may

authorize the custodian to invest the cash in investments as

determined by the board.

(g) In managing the assets of a fund, the board may permit the

custodian of the fund's securities to lend the securities as

provided by this section and by rules adopted by the board.

(h) To be eligible to lend securities under this section, a

custodian selected under Subsection (f) must be experienced in

the operation of a fully secured securities loan program and

must:

(1) maintain adequate capital in the prudent judgment of the

board to assure the safety of the securities;

(2) execute an indemnification agreement satisfactory in form

and content to the board fully indemnifying the board against

loss resulting from the custodian's operation of a securities

loan program for the fund's securities; and

(3) require any securities broker or dealer to whom it lends

securities of the fund to deliver and maintain with the custodian

collateral in the form of cash, United States government

securities, or letters of credit that are issued by banks rated

as to investment quality not less than A or its equivalent by a

nationally recognized investment rating firm in an amount equal

to at least 100 percent of the market value, from time to time,

of the loaned securities.

(i) The board shall require the custodian or custodians of a

fund to administer the fund solely and strictly as provided by

this chapter and the resolution authorizing the issuance of the

bonds, and the state may not take any other action relating to

the fund except those specified in this chapter and the

resolution authorizing the issuance of the bonds or the

establishment of the fund.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 11, eff. May

9, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 14.23, eff. Sept.

1, 1997; Acts 1999, 76th Leg., ch. 134, Sec. 8, eff. May 20,

1999; Acts 2001, 77th Leg., ch. 981, Sec. 6.

Sec. 164.012. RESOLUTIONS. (a) The resolution authorizing the

issuance of the bonds may prohibit the further issuance of bonds

or other obligations payable from the pledged revenues or may

reserve the right to issue additional bonds to be secured by a

pledge of and payable from the revenue on a parity with or

subordinate to the lien and pledge in support of the bonds being

issued.

(b) The resolution of the board authorizing the issuance of the

bonds may include other provisions and covenants that the board

determines necessary.

(c) In a resolution authorizing the issuance of bonds, the board

may prescribe systems, methods, routines, and procedures under

which the board will function.

(d) The board may adopt and have executed any other proceedings

or instruments necessary or convenient in the issuance of bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.013. INVESTMENT SECURITIES. The bonds and any interest

coupons are investment securities under Chapter 8, Business &

Commerce Code, and may be issued registrable as to principal or

as to both principal and interest or may be made redeemable

before maturity at the option of the authority or may contain a

mandatory redemption provision.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.014. APPROVAL OF THE ATTORNEY GENERAL. Bonds issued

under this chapter are subject to review and approval by the

attorney general in the same manner and with the same effect as

provided by Chapter 1371, Government Code.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.360, eff.

Sept. 1, 2001.

Sec. 164.015. REFUNDING BONDS. (a) The board may issue

refunding bonds to refund all or part of its outstanding bonds

issued under this chapter, including matured but unpaid interest.

(b) The board may refund bonds in the manner provided by general

law for revenue bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.016. BONDS AS INVESTMENTS AND SECURITY. (a) The bonds

are legal and authorized investments for banks, savings banks,

trust companies, savings and loan companies, insurance companies,

fiduciaries, trustees, guardians, the sinking funds of cities,

towns, villages, counties, school districts, and other political

subdivisions of the state, and other public funds of the state

and its agencies.

(b) The bonds are eligible to secure deposits of public funds of

the state and cities, counties, school districts, and other

political subdivisions of the state. The bonds are lawful and

sufficient security for deposits to the extent of their par

value.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.017. TAX EXEMPT. Since the board is performing an

essential governmental function in the exercise of the powers

conferred on it by this chapter, the bonds issued under this

chapter, and the interest and income from the bonds, including

any profit made on the sale of bonds, and all fees, charges,

gifts, grants, revenues, receipts, and other money received or

pledged to pay or secure the payment of bonds are free from

taxation and assessments of every kind by this state and any

city, county, district, authority, or other political subdivision

of this state.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.018. NO PLEDGE OF STATE FAITH AND CREDIT; COVENANT WITH

OWNERS OF BONDS. (a) Bonds issued under this chapter are

special obligations of the board and are payable only from and

secured only by the revenues and assets pledged to secure payment

of the bonds under the Texas Constitution and this chapter, and

the bonds are not and do not create or constitute a pledge, gift,

or loan of the faith, credit, or taxing authority of the state.

(b) Each bond must include a statement that the faith or credit

and the taxing authority of the state are not pledged, given, or

loaned to secure payment of the principal of, or premium or

interest on the bonds.

(c) The state pledges to and agrees with the owners of bonds

issued under this chapter that the state will not limit or alter

the rights vested in the board to fulfill the terms of agreements

made with the owners of the bonds or in any way impair the rights

and remedies of those owners until the bonds, together with any

premium and interest, interest on any unpaid premium or

installments of interest, and all costs and expenses in

connection with any action or proceeding by or on behalf of those

owners, are fully met and discharged. The board may include this

pledge and agreement of the state in an agreement with the owners

of the bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.019. ENFORCEMENT BY MANDAMUS. A writ of mandamus and

all other legal and equitable remedies are available to a party

in interest to require the board and any other party to carry out

agreements and to perform functions and duties under this

chapter, the Texas Constitution, or the board's bond resolutions

or orders.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-7-resources-programs > Chapter-164-veterans-financial-assistance-program

NATURAL RESOURCES CODE

TITLE 7. RESOURCES PROGRAMS

CHAPTER 164. VETERANS' FINANCIAL ASSISTANCE PROGRAM

Sec. 164.001. PURPOSE AND POLICY. (a) The legislature declares

that it is the policy of the state to provide financial

assistance to veterans of the state in recognition of their

service to this state and the United States and to honor veterans

with a final resting place and with lasting memorials that

commemorate their service.

(b) The legislature declares that existing mechanisms for

implementing the policy stated in Subsection (a) of this section

may be enhanced by adoption of this chapter and implementation of

the financial assistance programs authorized by this chapter.

(c) The legislature finds that this chapter and the financial

assistance programs authorized by this chapter are in furtherance

of a public purpose.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 981, Sec. 1, eff. Nov.

6, 2001.

Sec. 164.002. DEFINITIONS. (a) In this chapter:

(1) "Board" means the Veterans' Land Board.

(2) "Bonds" means the revenue bonds issued by the board under

this chapter.

(3) "Financial assistance" means the purchase of land, the sale

of land to veterans, and the making of home mortgage loans to

veterans, as provided for in this chapter.

(4) "Home" means a dwelling within this state in which a veteran

intends to reside as the veteran's principal residence.

(5) "Lending institution" means a bank, trust company, savings

bank, national banking association, savings and loan association,

building and loan association, mortgage banker, mortgage company,

credit union, life insurance company, or other financial

institution that customarily provides service or aids in the

financing of mortgages on single-family residential housing that

has been approved for participation by the board, including a

holding company for a lending institution.

(6) "Veteran" has the meaning assigned by Section 161.001.

(7) "Veterans cemetery" means a burial ground operated solely

for the burial of veterans and their eligible relatives.

(8) "Veterans home" means a life care facility, retirement home,

retirement village, home for the aging, or other facility that

furnishes shelter, food, medical attention, nursing services,

medical services, social activities, or other personal services

or attention to veterans.

(b) Repealed by Acts 2003, 78th Leg., ch. 1145, Sec. 5.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 5, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 2, eff. Nov. 6,

2001; Acts 2003, 78th Leg., ch. 1145, Sec. 4, 5, eff. June 20,

2003.

Sec. 164.003. FINANCIAL ASSISTANCE PROGRAMS. The board may

establish one or more programs for providing financial assistance

to veterans under this chapter. A program may be limited to the

purpose of purchasing land, selling land to veterans, making home

mortgage loans to veterans, or providing one or more veterans

homes or veterans cemeteries. To the extent a financial

assistance program is for the purpose of purchasing land or

selling land to veterans, the program shall be administered, to

the extent consistent with this chapter and otherwise deemed

practicable and desirable by the board, in accordance with the

board's Veterans' Land Program. To the extent a financial

assistance program is for the purpose of making home mortgage

loans to veterans, the program shall be administered, to the

extent consistent with this chapter and otherwise deemed

practicable and desirable by the board, in accordance with the

board's Veterans' Housing Assistance Program.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 6, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 3, eff. Nov. 6,

2001.

Sec. 164.004. RULES. The board shall adopt rules providing for

the administration of its financial assistance programs

established under this chapter, including rules concerning:

(1) the purchasing of land and the selling of land to veterans;

(2) the making of home mortgage loans to veterans;

(3) the use of insurance on land and homes as deemed appropriate

by the board, as further security for land sold or home mortgage

loans made;

(4) the criteria for approving lending institutions

participating in programs;

(5) the terms and conditions of a contract made with a lending

institution;

(6) the construction, acquisition, ownership, operation,

maintenance, enlargement, improvement, or furnishing or equipping

of veterans homes or veterans cemeteries; and

(7) other matters as the board deems appropriate.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 7, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 4, eff. Nov. 6,

2001.

Sec. 164.005. RIGHTS AND POWERS OF BOARD. (a) In connection

with the administration of its financial assistance programs

under this chapter, the board has and may exercise, to the extent

not inconsistent with this chapter, all the rights and powers

granted to it by Chapters 161 and 162 of this code relating to

the administration of the board's Veterans' Land Program and

Veterans' Housing Assistance Program.

(b) In administering any of the board's financial assistance

programs relating to veterans homes, the board, or the board in

conjunction with other state or federal agencies, may acquire by

purchase, gift, devise, lease, or a combination of those methods,

construct, operate, enlarge, improve, furnish, or equip one or

more veterans homes.

(c) The board may enter into an agreement with any person for

the management or operation of all or part of a veterans home or

all or part of a veterans cemetery. The board may delegate to the

manager the authority to manage the veterans home or veterans

cemetery and to employ and discharge employees.

(d) The board may not authorize the use of any veterans home in

a manner that would entitle the United States to recover any

amounts pursuant to 38 U.S.C. Section 8136, as amended, or any

successor statute.

(e) On terms and conditions acceptable to it, the board may

accept and administer gifts, grants, or donations for the

support, acquisition, construction, operation, enlargement,

improvement, furnishing, or equipping of veterans homes or

veterans cemeteries and may enter into agreements with a

nonprofit corporation for the solicitation, receipt, and

disbursement of the gifts, grants, or donations.

(f) The board, the chairman of the Texas Veterans Commission,

and two representatives of the veterans community selected by the

chairman of the Texas Veterans Commission shall:

(1) establish the guidelines for determining:

(A) the location and size of veterans cemeteries; and

(B) the eligibility for burial in a veterans cemetery; and

(2) select up to seven locations across the state for veterans

cemeteries.

(g) In administering any of the board's financial assistance

programs relating to veterans cemeteries, the board, or the board

in conjunction with other state or federal agencies, may plan and

design, operate, maintain, enlarge, or improve veterans

cemeteries.

(h) Of the funds available in the veterans' land fund, the

veterans' housing assistance fund, and the veterans' housing

assistance fund II that may be used for veterans cemeteries, the

board may spend not more than $7 million each fiscal year to plan

and design, operate, maintain, enlarge, or improve veterans

cemeteries. The board may not use funds from the veterans' land

fund, the veterans' housing assistance fund, or the veterans'

housing assistance fund II to acquire land to be used for a

veterans cemetery.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 8, eff. May

9, 1997; Acts 1999, 76th Leg., ch. 134, Sec. 6, eff. May 20,

1999; Acts 2001, 77th Leg., ch. 981, Sec. 5, eff. Nov. 6, 2001.

Sec. 164.0051. LOCATION OF VETERANS HOMES. To the extent

practicable, when determining the location of new veterans homes

in this state, the board shall consider:

(1) the geographic proximity to existing state veterans homes

with special regard to areas not served by state veterans homes;

(2) the economic impact of the veterans home on the local

community and the veterans program; and

(3) the areas with a significant veteran population, without

regard to international boundaries.

Added by Acts 2001, 77th Leg., ch. 746, Sec. 1, eff. June 13,

2001.

Sec. 164.006. ISSUANCE OF BONDS. For the issuance of bonds

under this chapter, the board may exercise the authority granted

to the governing body of an issuer with regard to issuance of

obligations under Chapter 1371, Government Code, to the extent

that it is not inconsistent with this chapter.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.358, eff.

Sept. 1, 2001.

Sec. 164.007. CONDITIONS FOR ISSUANCE OF BONDS. (a) Bonds may

be issued in various series and issues.

(b) Bonds shall be payable as provided by the board and may

mature serially or otherwise.

(c) Bonds shall be redeemable before maturity or subject to

tender for purchase at the price or prices and under the terms

and conditions fixed by the board in the resolution providing for

the issuance and sale of the bonds.

(d) Bonds may bear a fixed, variable, floating, or other rate or

rates of interest or may bear no interest, as determined by the

board.

(e) Bonds may be sold at public or private sale at a price or

prices and on terms determined by the board.

(f) Bonds issued under this chapter for a purpose other than

buying back or refunding general obligation bonds issued under

Article III, Section 49-b, 49-b-1, or 49-b-2, of the Texas

Constitution may not in the aggregate exceed $1 billion.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 875, Sec. 1, eff. June

14, 2001.

Sec. 164.008. FORM OF BONDS. (a) The bonds may be issued in

the form, denominations, and manner and under the terms,

conditions, and details as provided by the board in the

resolution authorizing their existence.

(b) The bonds shall be signed and executed as provided by the

board's resolution or order authorizing the issuance of the

bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.009. SECURITY FOR THE BONDS. (a) The bonds issued

under this chapter shall be special obligations of the board. As

security for the payment of the bonds, the board may provide for

a pledge of and lien or mortgage on:

(1) the receipts of all kinds of the veterans' land fund, the

veterans' housing assistance fund, and the veterans' housing

assistance fund II determined by the board, on the basis of

facts, circumstances, and expectations at the time of issuance of

the bonds, not to be required for the payment of principal of or

interest on the general obligation bonds issued by the board to

augment the funds or to make payments with respect to principal

or interest under a bond enhancement agreement with respect to

the general obligation bonds;

(2) the assets of the veterans' land fund, the veterans' housing

assistance fund, or the veterans' housing assistance fund II

determined by the board on the basis of facts, circumstances, and

expectations at the time of issuance of the bonds not to be

required for the purposes of the fund;

(3) the payments and repayments received by the board from the

board's financial assistance provided under this chapter;

(4) other program revenues;

(5) other available revenues of the board; and

(6) one or more veterans homes.

(b) The pledge and lien or mortgage are to be provided for and

determined in accordance with the resolution of the board

providing for the issuance and sale of the bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1993, 73rd Leg., ch. 242, Sec. 3.02; Acts

1997, 75th Leg., ch. 71, Sec. 9, eff. May 9, 1997; Acts 1999,

76th Leg., ch. 134, Sec. 7, eff. May 20, 1999; Acts 2003, 78th

Leg., ch. 590, Sec. 1, eff. Sept. 13, 2003.

Sec. 164.010. BOND ENHANCEMENT AGREEMENTS. (a) The board may

at any time and from time to time enter into one or more bond

enhancement agreements that the board deems to be necessary or

appropriate to place the obligation of the board, as represented

by the bonds, in whole or in part, on the interest rate,

currency, cash flow, or other basis desired by the board. Bond

enhancement agreements may include, on terms and conditions

approved by the board, interest rate swap agreements, currency

swap agreements, forward payment conversion agreements,

agreements providing for payments based on levels of or changes

in interest rates or currency exchange rates, agreements to

exchange cash flows or a series of payments, or agreements

including options, puts, or calls, to hedge payment, currency,

rate, spread, or other exposure. A bond enhancement agreement is

an agreement for professional services and shall contain the

terms and conditions and be for the period that the board

approves. The cost to the board of the bond enhancement agreement

may be paid from the proceeds of the sale of the bonds to which

the bond enhancement agreement relates or from any other source,

including the revenues of the board that are available for the

purpose of paying the bonds or that may otherwise be available to

make those payments.

(b) The resolution of the board authorizing a bond enhancement

agreement may authorize one or more designated officers or

employees of the board to act on behalf of the board in entering

into and delivering the bond enhancement agreement and in

determining or setting the counterparty and terms of the bond

enhancement agreement specified in the resolution, except that

the resolution must set the maximum amount and term for the bond

enhancement agreement.

(c) Unless the board elects otherwise in its approval of a bond

enhancement agreement, the bond enhancement agreement is not a

credit agreement for purposes of Chapter 1371, Government Code,

regardless of whether the bonds relating to the bond enhancement

agreement were issued in part under that law.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 10, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 1420, Sec. 8.359, eff. Sept.

1, 2001.

Sec. 164.011. FUNDS. (a) In the resolution authorizing the

issuance of bonds, the board may make additional covenants with

respect to the bonds and the pledged revenues and may provide for

the flow of funds and the establishment, maintenance, and

investment of funds. The funds established may include an

interest and sinking fund, a reserve fund, and other funds that

will be kept and maintained by or under the direction of the

board.

(b) The board may by resolution provide for the establishment,

maintenance, and investment of additional funds into which the

board may deposit revenues from any financial assistance program

under this chapter that are not pledged to bonds, including any

gifts, grants, or donations accepted by the board for the

support, acquisition, construction, operation, enlargement,

improvement, furnishing, or equipping of veterans homes or

veterans cemeteries.

(c) Funds established by the board under this chapter are not to

be part of the State Treasury and are not subject to Subchapter

F, Chapter 404, Government Code. Any provision of this chapter or

other law that provides for the deposit of money or another thing

of value into the funds prevails over the requirements of

Subchapter F, Chapter 404, Government Code. The funds shall

remain under the control of the board but, at the direction of

the board, may be kept and held in escrow and in trust by the

comptroller on behalf of the board and the owners of the bonds

and used only as provided by this chapter.

(d) Money in a fund shall be invested in investments authorized

as provided by a resolution or order of the board.

(e) Legal title to money in a fund is in the board unless or

until paid from the fund as provided by this chapter or the

resolution authorizing the issuance of the bonds or the

establishment of the fund.

(f) The board shall select the comptroller or one or more

commercial banks, depository trust companies, or other entities

to serve as custodian of the cash or securities of a fund and may

authorize the custodian to invest the cash in investments as

determined by the board.

(g) In managing the assets of a fund, the board may permit the

custodian of the fund's securities to lend the securities as

provided by this section and by rules adopted by the board.

(h) To be eligible to lend securities under this section, a

custodian selected under Subsection (f) must be experienced in

the operation of a fully secured securities loan program and

must:

(1) maintain adequate capital in the prudent judgment of the

board to assure the safety of the securities;

(2) execute an indemnification agreement satisfactory in form

and content to the board fully indemnifying the board against

loss resulting from the custodian's operation of a securities

loan program for the fund's securities; and

(3) require any securities broker or dealer to whom it lends

securities of the fund to deliver and maintain with the custodian

collateral in the form of cash, United States government

securities, or letters of credit that are issued by banks rated

as to investment quality not less than A or its equivalent by a

nationally recognized investment rating firm in an amount equal

to at least 100 percent of the market value, from time to time,

of the loaned securities.

(i) The board shall require the custodian or custodians of a

fund to administer the fund solely and strictly as provided by

this chapter and the resolution authorizing the issuance of the

bonds, and the state may not take any other action relating to

the fund except those specified in this chapter and the

resolution authorizing the issuance of the bonds or the

establishment of the fund.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 11, eff. May

9, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 14.23, eff. Sept.

1, 1997; Acts 1999, 76th Leg., ch. 134, Sec. 8, eff. May 20,

1999; Acts 2001, 77th Leg., ch. 981, Sec. 6.

Sec. 164.012. RESOLUTIONS. (a) The resolution authorizing the

issuance of the bonds may prohibit the further issuance of bonds

or other obligations payable from the pledged revenues or may

reserve the right to issue additional bonds to be secured by a

pledge of and payable from the revenue on a parity with or

subordinate to the lien and pledge in support of the bonds being

issued.

(b) The resolution of the board authorizing the issuance of the

bonds may include other provisions and covenants that the board

determines necessary.

(c) In a resolution authorizing the issuance of bonds, the board

may prescribe systems, methods, routines, and procedures under

which the board will function.

(d) The board may adopt and have executed any other proceedings

or instruments necessary or convenient in the issuance of bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.013. INVESTMENT SECURITIES. The bonds and any interest

coupons are investment securities under Chapter 8, Business &

Commerce Code, and may be issued registrable as to principal or

as to both principal and interest or may be made redeemable

before maturity at the option of the authority or may contain a

mandatory redemption provision.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.014. APPROVAL OF THE ATTORNEY GENERAL. Bonds issued

under this chapter are subject to review and approval by the

attorney general in the same manner and with the same effect as

provided by Chapter 1371, Government Code.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.360, eff.

Sept. 1, 2001.

Sec. 164.015. REFUNDING BONDS. (a) The board may issue

refunding bonds to refund all or part of its outstanding bonds

issued under this chapter, including matured but unpaid interest.

(b) The board may refund bonds in the manner provided by general

law for revenue bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.016. BONDS AS INVESTMENTS AND SECURITY. (a) The bonds

are legal and authorized investments for banks, savings banks,

trust companies, savings and loan companies, insurance companies,

fiduciaries, trustees, guardians, the sinking funds of cities,

towns, villages, counties, school districts, and other political

subdivisions of the state, and other public funds of the state

and its agencies.

(b) The bonds are eligible to secure deposits of public funds of

the state and cities, counties, school districts, and other

political subdivisions of the state. The bonds are lawful and

sufficient security for deposits to the extent of their par

value.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.017. TAX EXEMPT. Since the board is performing an

essential governmental function in the exercise of the powers

conferred on it by this chapter, the bonds issued under this

chapter, and the interest and income from the bonds, including

any profit made on the sale of bonds, and all fees, charges,

gifts, grants, revenues, receipts, and other money received or

pledged to pay or secure the payment of bonds are free from

taxation and assessments of every kind by this state and any

city, county, district, authority, or other political subdivision

of this state.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.018. NO PLEDGE OF STATE FAITH AND CREDIT; COVENANT WITH

OWNERS OF BONDS. (a) Bonds issued under this chapter are

special obligations of the board and are payable only from and

secured only by the revenues and assets pledged to secure payment

of the bonds under the Texas Constitution and this chapter, and

the bonds are not and do not create or constitute a pledge, gift,

or loan of the faith, credit, or taxing authority of the state.

(b) Each bond must include a statement that the faith or credit

and the taxing authority of the state are not pledged, given, or

loaned to secure payment of the principal of, or premium or

interest on the bonds.

(c) The state pledges to and agrees with the owners of bonds

issued under this chapter that the state will not limit or alter

the rights vested in the board to fulfill the terms of agreements

made with the owners of the bonds or in any way impair the rights

and remedies of those owners until the bonds, together with any

premium and interest, interest on any unpaid premium or

installments of interest, and all costs and expenses in

connection with any action or proceeding by or on behalf of those

owners, are fully met and discharged. The board may include this

pledge and agreement of the state in an agreement with the owners

of the bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.019. ENFORCEMENT BY MANDAMUS. A writ of mandamus and

all other legal and equitable remedies are available to a party

in interest to require the board and any other party to carry out

agreements and to perform functions and duties under this

chapter, the Texas Constitution, or the board's bond resolutions

or orders.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-7-resources-programs > Chapter-164-veterans-financial-assistance-program

NATURAL RESOURCES CODE

TITLE 7. RESOURCES PROGRAMS

CHAPTER 164. VETERANS' FINANCIAL ASSISTANCE PROGRAM

Sec. 164.001. PURPOSE AND POLICY. (a) The legislature declares

that it is the policy of the state to provide financial

assistance to veterans of the state in recognition of their

service to this state and the United States and to honor veterans

with a final resting place and with lasting memorials that

commemorate their service.

(b) The legislature declares that existing mechanisms for

implementing the policy stated in Subsection (a) of this section

may be enhanced by adoption of this chapter and implementation of

the financial assistance programs authorized by this chapter.

(c) The legislature finds that this chapter and the financial

assistance programs authorized by this chapter are in furtherance

of a public purpose.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 981, Sec. 1, eff. Nov.

6, 2001.

Sec. 164.002. DEFINITIONS. (a) In this chapter:

(1) "Board" means the Veterans' Land Board.

(2) "Bonds" means the revenue bonds issued by the board under

this chapter.

(3) "Financial assistance" means the purchase of land, the sale

of land to veterans, and the making of home mortgage loans to

veterans, as provided for in this chapter.

(4) "Home" means a dwelling within this state in which a veteran

intends to reside as the veteran's principal residence.

(5) "Lending institution" means a bank, trust company, savings

bank, national banking association, savings and loan association,

building and loan association, mortgage banker, mortgage company,

credit union, life insurance company, or other financial

institution that customarily provides service or aids in the

financing of mortgages on single-family residential housing that

has been approved for participation by the board, including a

holding company for a lending institution.

(6) "Veteran" has the meaning assigned by Section 161.001.

(7) "Veterans cemetery" means a burial ground operated solely

for the burial of veterans and their eligible relatives.

(8) "Veterans home" means a life care facility, retirement home,

retirement village, home for the aging, or other facility that

furnishes shelter, food, medical attention, nursing services,

medical services, social activities, or other personal services

or attention to veterans.

(b) Repealed by Acts 2003, 78th Leg., ch. 1145, Sec. 5.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 5, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 2, eff. Nov. 6,

2001; Acts 2003, 78th Leg., ch. 1145, Sec. 4, 5, eff. June 20,

2003.

Sec. 164.003. FINANCIAL ASSISTANCE PROGRAMS. The board may

establish one or more programs for providing financial assistance

to veterans under this chapter. A program may be limited to the

purpose of purchasing land, selling land to veterans, making home

mortgage loans to veterans, or providing one or more veterans

homes or veterans cemeteries. To the extent a financial

assistance program is for the purpose of purchasing land or

selling land to veterans, the program shall be administered, to

the extent consistent with this chapter and otherwise deemed

practicable and desirable by the board, in accordance with the

board's Veterans' Land Program. To the extent a financial

assistance program is for the purpose of making home mortgage

loans to veterans, the program shall be administered, to the

extent consistent with this chapter and otherwise deemed

practicable and desirable by the board, in accordance with the

board's Veterans' Housing Assistance Program.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 6, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 3, eff. Nov. 6,

2001.

Sec. 164.004. RULES. The board shall adopt rules providing for

the administration of its financial assistance programs

established under this chapter, including rules concerning:

(1) the purchasing of land and the selling of land to veterans;

(2) the making of home mortgage loans to veterans;

(3) the use of insurance on land and homes as deemed appropriate

by the board, as further security for land sold or home mortgage

loans made;

(4) the criteria for approving lending institutions

participating in programs;

(5) the terms and conditions of a contract made with a lending

institution;

(6) the construction, acquisition, ownership, operation,

maintenance, enlargement, improvement, or furnishing or equipping

of veterans homes or veterans cemeteries; and

(7) other matters as the board deems appropriate.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 7, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 981, Sec. 4, eff. Nov. 6,

2001.

Sec. 164.005. RIGHTS AND POWERS OF BOARD. (a) In connection

with the administration of its financial assistance programs

under this chapter, the board has and may exercise, to the extent

not inconsistent with this chapter, all the rights and powers

granted to it by Chapters 161 and 162 of this code relating to

the administration of the board's Veterans' Land Program and

Veterans' Housing Assistance Program.

(b) In administering any of the board's financial assistance

programs relating to veterans homes, the board, or the board in

conjunction with other state or federal agencies, may acquire by

purchase, gift, devise, lease, or a combination of those methods,

construct, operate, enlarge, improve, furnish, or equip one or

more veterans homes.

(c) The board may enter into an agreement with any person for

the management or operation of all or part of a veterans home or

all or part of a veterans cemetery. The board may delegate to the

manager the authority to manage the veterans home or veterans

cemetery and to employ and discharge employees.

(d) The board may not authorize the use of any veterans home in

a manner that would entitle the United States to recover any

amounts pursuant to 38 U.S.C. Section 8136, as amended, or any

successor statute.

(e) On terms and conditions acceptable to it, the board may

accept and administer gifts, grants, or donations for the

support, acquisition, construction, operation, enlargement,

improvement, furnishing, or equipping of veterans homes or

veterans cemeteries and may enter into agreements with a

nonprofit corporation for the solicitation, receipt, and

disbursement of the gifts, grants, or donations.

(f) The board, the chairman of the Texas Veterans Commission,

and two representatives of the veterans community selected by the

chairman of the Texas Veterans Commission shall:

(1) establish the guidelines for determining:

(A) the location and size of veterans cemeteries; and

(B) the eligibility for burial in a veterans cemetery; and

(2) select up to seven locations across the state for veterans

cemeteries.

(g) In administering any of the board's financial assistance

programs relating to veterans cemeteries, the board, or the board

in conjunction with other state or federal agencies, may plan and

design, operate, maintain, enlarge, or improve veterans

cemeteries.

(h) Of the funds available in the veterans' land fund, the

veterans' housing assistance fund, and the veterans' housing

assistance fund II that may be used for veterans cemeteries, the

board may spend not more than $7 million each fiscal year to plan

and design, operate, maintain, enlarge, or improve veterans

cemeteries. The board may not use funds from the veterans' land

fund, the veterans' housing assistance fund, or the veterans'

housing assistance fund II to acquire land to be used for a

veterans cemetery.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 8, eff. May

9, 1997; Acts 1999, 76th Leg., ch. 134, Sec. 6, eff. May 20,

1999; Acts 2001, 77th Leg., ch. 981, Sec. 5, eff. Nov. 6, 2001.

Sec. 164.0051. LOCATION OF VETERANS HOMES. To the extent

practicable, when determining the location of new veterans homes

in this state, the board shall consider:

(1) the geographic proximity to existing state veterans homes

with special regard to areas not served by state veterans homes;

(2) the economic impact of the veterans home on the local

community and the veterans program; and

(3) the areas with a significant veteran population, without

regard to international boundaries.

Added by Acts 2001, 77th Leg., ch. 746, Sec. 1, eff. June 13,

2001.

Sec. 164.006. ISSUANCE OF BONDS. For the issuance of bonds

under this chapter, the board may exercise the authority granted

to the governing body of an issuer with regard to issuance of

obligations under Chapter 1371, Government Code, to the extent

that it is not inconsistent with this chapter.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.358, eff.

Sept. 1, 2001.

Sec. 164.007. CONDITIONS FOR ISSUANCE OF BONDS. (a) Bonds may

be issued in various series and issues.

(b) Bonds shall be payable as provided by the board and may

mature serially or otherwise.

(c) Bonds shall be redeemable before maturity or subject to

tender for purchase at the price or prices and under the terms

and conditions fixed by the board in the resolution providing for

the issuance and sale of the bonds.

(d) Bonds may bear a fixed, variable, floating, or other rate or

rates of interest or may bear no interest, as determined by the

board.

(e) Bonds may be sold at public or private sale at a price or

prices and on terms determined by the board.

(f) Bonds issued under this chapter for a purpose other than

buying back or refunding general obligation bonds issued under

Article III, Section 49-b, 49-b-1, or 49-b-2, of the Texas

Constitution may not in the aggregate exceed $1 billion.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 875, Sec. 1, eff. June

14, 2001.

Sec. 164.008. FORM OF BONDS. (a) The bonds may be issued in

the form, denominations, and manner and under the terms,

conditions, and details as provided by the board in the

resolution authorizing their existence.

(b) The bonds shall be signed and executed as provided by the

board's resolution or order authorizing the issuance of the

bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.009. SECURITY FOR THE BONDS. (a) The bonds issued

under this chapter shall be special obligations of the board. As

security for the payment of the bonds, the board may provide for

a pledge of and lien or mortgage on:

(1) the receipts of all kinds of the veterans' land fund, the

veterans' housing assistance fund, and the veterans' housing

assistance fund II determined by the board, on the basis of

facts, circumstances, and expectations at the time of issuance of

the bonds, not to be required for the payment of principal of or

interest on the general obligation bonds issued by the board to

augment the funds or to make payments with respect to principal

or interest under a bond enhancement agreement with respect to

the general obligation bonds;

(2) the assets of the veterans' land fund, the veterans' housing

assistance fund, or the veterans' housing assistance fund II

determined by the board on the basis of facts, circumstances, and

expectations at the time of issuance of the bonds not to be

required for the purposes of the fund;

(3) the payments and repayments received by the board from the

board's financial assistance provided under this chapter;

(4) other program revenues;

(5) other available revenues of the board; and

(6) one or more veterans homes.

(b) The pledge and lien or mortgage are to be provided for and

determined in accordance with the resolution of the board

providing for the issuance and sale of the bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1993, 73rd Leg., ch. 242, Sec. 3.02; Acts

1997, 75th Leg., ch. 71, Sec. 9, eff. May 9, 1997; Acts 1999,

76th Leg., ch. 134, Sec. 7, eff. May 20, 1999; Acts 2003, 78th

Leg., ch. 590, Sec. 1, eff. Sept. 13, 2003.

Sec. 164.010. BOND ENHANCEMENT AGREEMENTS. (a) The board may

at any time and from time to time enter into one or more bond

enhancement agreements that the board deems to be necessary or

appropriate to place the obligation of the board, as represented

by the bonds, in whole or in part, on the interest rate,

currency, cash flow, or other basis desired by the board. Bond

enhancement agreements may include, on terms and conditions

approved by the board, interest rate swap agreements, currency

swap agreements, forward payment conversion agreements,

agreements providing for payments based on levels of or changes

in interest rates or currency exchange rates, agreements to

exchange cash flows or a series of payments, or agreements

including options, puts, or calls, to hedge payment, currency,

rate, spread, or other exposure. A bond enhancement agreement is

an agreement for professional services and shall contain the

terms and conditions and be for the period that the board

approves. The cost to the board of the bond enhancement agreement

may be paid from the proceeds of the sale of the bonds to which

the bond enhancement agreement relates or from any other source,

including the revenues of the board that are available for the

purpose of paying the bonds or that may otherwise be available to

make those payments.

(b) The resolution of the board authorizing a bond enhancement

agreement may authorize one or more designated officers or

employees of the board to act on behalf of the board in entering

into and delivering the bond enhancement agreement and in

determining or setting the counterparty and terms of the bond

enhancement agreement specified in the resolution, except that

the resolution must set the maximum amount and term for the bond

enhancement agreement.

(c) Unless the board elects otherwise in its approval of a bond

enhancement agreement, the bond enhancement agreement is not a

credit agreement for purposes of Chapter 1371, Government Code,

regardless of whether the bonds relating to the bond enhancement

agreement were issued in part under that law.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 10, eff. May

9, 1997; Acts 2001, 77th Leg., ch. 1420, Sec. 8.359, eff. Sept.

1, 2001.

Sec. 164.011. FUNDS. (a) In the resolution authorizing the

issuance of bonds, the board may make additional covenants with

respect to the bonds and the pledged revenues and may provide for

the flow of funds and the establishment, maintenance, and

investment of funds. The funds established may include an

interest and sinking fund, a reserve fund, and other funds that

will be kept and maintained by or under the direction of the

board.

(b) The board may by resolution provide for the establishment,

maintenance, and investment of additional funds into which the

board may deposit revenues from any financial assistance program

under this chapter that are not pledged to bonds, including any

gifts, grants, or donations accepted by the board for the

support, acquisition, construction, operation, enlargement,

improvement, furnishing, or equipping of veterans homes or

veterans cemeteries.

(c) Funds established by the board under this chapter are not to

be part of the State Treasury and are not subject to Subchapter

F, Chapter 404, Government Code. Any provision of this chapter or

other law that provides for the deposit of money or another thing

of value into the funds prevails over the requirements of

Subchapter F, Chapter 404, Government Code. The funds shall

remain under the control of the board but, at the direction of

the board, may be kept and held in escrow and in trust by the

comptroller on behalf of the board and the owners of the bonds

and used only as provided by this chapter.

(d) Money in a fund shall be invested in investments authorized

as provided by a resolution or order of the board.

(e) Legal title to money in a fund is in the board unless or

until paid from the fund as provided by this chapter or the

resolution authorizing the issuance of the bonds or the

establishment of the fund.

(f) The board shall select the comptroller or one or more

commercial banks, depository trust companies, or other entities

to serve as custodian of the cash or securities of a fund and may

authorize the custodian to invest the cash in investments as

determined by the board.

(g) In managing the assets of a fund, the board may permit the

custodian of the fund's securities to lend the securities as

provided by this section and by rules adopted by the board.

(h) To be eligible to lend securities under this section, a

custodian selected under Subsection (f) must be experienced in

the operation of a fully secured securities loan program and

must:

(1) maintain adequate capital in the prudent judgment of the

board to assure the safety of the securities;

(2) execute an indemnification agreement satisfactory in form

and content to the board fully indemnifying the board against

loss resulting from the custodian's operation of a securities

loan program for the fund's securities; and

(3) require any securities broker or dealer to whom it lends

securities of the fund to deliver and maintain with the custodian

collateral in the form of cash, United States government

securities, or letters of credit that are issued by banks rated

as to investment quality not less than A or its equivalent by a

nationally recognized investment rating firm in an amount equal

to at least 100 percent of the market value, from time to time,

of the loaned securities.

(i) The board shall require the custodian or custodians of a

fund to administer the fund solely and strictly as provided by

this chapter and the resolution authorizing the issuance of the

bonds, and the state may not take any other action relating to

the fund except those specified in this chapter and the

resolution authorizing the issuance of the bonds or the

establishment of the fund.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 1997, 75th Leg., ch. 71, Sec. 11, eff. May

9, 1997; Acts 1997, 75th Leg., ch. 1423, Sec. 14.23, eff. Sept.

1, 1997; Acts 1999, 76th Leg., ch. 134, Sec. 8, eff. May 20,

1999; Acts 2001, 77th Leg., ch. 981, Sec. 6.

Sec. 164.012. RESOLUTIONS. (a) The resolution authorizing the

issuance of the bonds may prohibit the further issuance of bonds

or other obligations payable from the pledged revenues or may

reserve the right to issue additional bonds to be secured by a

pledge of and payable from the revenue on a parity with or

subordinate to the lien and pledge in support of the bonds being

issued.

(b) The resolution of the board authorizing the issuance of the

bonds may include other provisions and covenants that the board

determines necessary.

(c) In a resolution authorizing the issuance of bonds, the board

may prescribe systems, methods, routines, and procedures under

which the board will function.

(d) The board may adopt and have executed any other proceedings

or instruments necessary or convenient in the issuance of bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.013. INVESTMENT SECURITIES. The bonds and any interest

coupons are investment securities under Chapter 8, Business &

Commerce Code, and may be issued registrable as to principal or

as to both principal and interest or may be made redeemable

before maturity at the option of the authority or may contain a

mandatory redemption provision.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.014. APPROVAL OF THE ATTORNEY GENERAL. Bonds issued

under this chapter are subject to review and approval by the

attorney general in the same manner and with the same effect as

provided by Chapter 1371, Government Code.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.360, eff.

Sept. 1, 2001.

Sec. 164.015. REFUNDING BONDS. (a) The board may issue

refunding bonds to refund all or part of its outstanding bonds

issued under this chapter, including matured but unpaid interest.

(b) The board may refund bonds in the manner provided by general

law for revenue bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.016. BONDS AS INVESTMENTS AND SECURITY. (a) The bonds

are legal and authorized investments for banks, savings banks,

trust companies, savings and loan companies, insurance companies,

fiduciaries, trustees, guardians, the sinking funds of cities,

towns, villages, counties, school districts, and other political

subdivisions of the state, and other public funds of the state

and its agencies.

(b) The bonds are eligible to secure deposits of public funds of

the state and cities, counties, school districts, and other

political subdivisions of the state. The bonds are lawful and

sufficient security for deposits to the extent of their par

value.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.017. TAX EXEMPT. Since the board is performing an

essential governmental function in the exercise of the powers

conferred on it by this chapter, the bonds issued under this

chapter, and the interest and income from the bonds, including

any profit made on the sale of bonds, and all fees, charges,

gifts, grants, revenues, receipts, and other money received or

pledged to pay or secure the payment of bonds are free from

taxation and assessments of every kind by this state and any

city, county, district, authority, or other political subdivision

of this state.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.018. NO PLEDGE OF STATE FAITH AND CREDIT; COVENANT WITH

OWNERS OF BONDS. (a) Bonds issued under this chapter are

special obligations of the board and are payable only from and

secured only by the revenues and assets pledged to secure payment

of the bonds under the Texas Constitution and this chapter, and

the bonds are not and do not create or constitute a pledge, gift,

or loan of the faith, credit, or taxing authority of the state.

(b) Each bond must include a statement that the faith or credit

and the taxing authority of the state are not pledged, given, or

loaned to secure payment of the principal of, or premium or

interest on the bonds.

(c) The state pledges to and agrees with the owners of bonds

issued under this chapter that the state will not limit or alter

the rights vested in the board to fulfill the terms of agreements

made with the owners of the bonds or in any way impair the rights

and remedies of those owners until the bonds, together with any

premium and interest, interest on any unpaid premium or

installments of interest, and all costs and expenses in

connection with any action or proceeding by or on behalf of those

owners, are fully met and discharged. The board may include this

pledge and agreement of the state in an agreement with the owners

of the bonds.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.

Sec. 164.019. ENFORCEMENT BY MANDAMUS. A writ of mandamus and

all other legal and equitable remedies are available to a party

in interest to require the board and any other party to carry out

agreements and to perform functions and duties under this

chapter, the Texas Constitution, or the board's bond resolutions

or orders.

Added by Acts 1993, 73rd Leg., ch. 242, Sec. 3.01, eff. Aug. 30,

1993.