Texas Education Code 45.259 – Payment From Intercepted Funds
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(a) Immediately following receipt of notice under § 45.258, the commissioner shall instruct the comptroller to transfer to the district’s paying agent from appropriations to the Foundation School Program that may be used for the purpose under § 45.252 and other law the amount necessary to pay the maturing or matured principal or interest.
(b) Immediately following receipt of the funds for payment of the principal or interest, the paying agent shall pay the amount due.
Terms Used In Texas Education Code 45.259
- Comptroller: means the state comptroller of public accounts. See Texas Government Code 312.011
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- 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.
- 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) The procedures prescribed by Subsections (a) and (b) apply to each payment of principal or interest on bonds as the payment becomes due until the bonds mature or are defeased in accordance with state law.
(d) If money appropriated for the Foundation School Program is used for purposes of this subchapter and as a result there is insufficient money to fully fund the Foundation School Program, the commissioner shall, to the extent necessary, reduce each school district’s foundation school fund allocations, other than any portion appropriated from the available school fund, in the same manner provided by § 48.266(f) for a case in which school district entitlements exceed the amount appropriated. The following fiscal year, a district’s entitlement under § 48.266 is increased by an amount equal to the reduction under this subsection.
(e) A payment made under this section by the state on behalf of a school district of funds the district owes on bonds for which credit enhancement is provided under this subchapter creates a repayment obligation of the district to the state regardless of the maturity date of, or any payment of interest on, the bonds.
(f) This section does not create a debt of the state under the Texas Constitution or, except to the extent provided by this subchapter, create a payment obligation.