Texas Education Code 45.112 – Contracts for Investment of Debt Service Funds
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(a) A school district, including a junior college district or community college district, may enter into a contract with a term not to exceed seven years to purchase investments with the proceeds of taxes levied or to be levied by the district for the purpose of paying debt service on bonds issued by the district.
(b) A contract under this section may provide for the purchase of investments at a stated yield or yields.
Terms Used In Texas Education Code 45.112
- Contract: A legal written agreement that becomes binding when signed.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(c) Before entering a contract under this section, a school district must solicit and receive bids from at least three separate providers. The district must accept the qualifying bid that provides for the highest yield investments over the term of the contract.
(d) A contract under this section may provide only for the purchase of an obligation described by § 2256.009(a)(1), Government Code, other than an obligation described by § 2256.009(b) of that code.