Texas Government Code 1372.025 – Reallocation of State Ceiling On Failure of Bonds to Qualify as Tax-Exempt Obligations
(a) If a type of bond listed in § 1372.022(a) does not qualify on January 2 of any year for treatment as a tax-exempt obligation under the Internal Revenue Code:
(1) § 1372.022(a) has no effect for that year for that type of bond; and
(2) by March 1, the portion of the state ceiling that but for Subdivision (1) would have been available exclusively for reservations by issuers of that type of bond shall be reallocated proportionately for reservation by each other category of issuer listed in that section.
(b) Subsection (a) does not apply to qualified mortgage bonds or qualified residential rental project bonds made available exclusively to the Texas Department of Housing and Community Affairs under § 1372.023 or the Texas State Affordable Housing Corporation under § 1372.0223(1).
Terms Used In Texas Government Code 1372.025
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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.
- Year: means 12 consecutive months. See Texas Government Code 311.005