Texas Education Code 45.253 – Limitation On Intercept Credit Enhancement
(a) In each month of each fiscal year, the commissioner shall determine the amount of funds available to make payments under this subchapter from the Foundation School Program through the end of the fiscal year and the amounts due under this code to public schools from the Foundation School Program through the end of the fiscal year. The commissioner may revise a determination under this subsection during the fiscal year as appropriate.
(b) The commissioner may not endorse particular bonds for credit enhancement under this subchapter until the commissioner has:
(1) made the determinations required under Subsection (a); and
(2) determined that the endorsement will not cause the projected debt service coming due during the remainder of the fiscal year for bonds provided credit enhancement under this subchapter to exceed the lesser of:
(A) one-half of the amount of funds due to public schools from the Foundation School Program for the remainder of the fiscal year; or
(B) one-half of the amount of funds anticipated to be on hand in the Foundation School Program to make payments for the remainder of the fiscal year.
Terms Used In Texas Education Code 45.253
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Month: means a calendar month. See Texas Government Code 312.011
- Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
- Year: means 12 consecutive months. See Texas Government Code 311.005
(c) The commissioner may not endorse particular bonds for credit enhancement under this subchapter unless the commissioner has determined that the maximum annual debt service on the bonds during any state fiscal year will not exceed the lesser of:
(1) one-half of the amount of funds due to public schools from the Foundation School Program for the current fiscal year; or
(2) one-half of the amount of funds anticipated to be on hand in the Foundation School Program to make payments for the current fiscal year.