Texas § 1501.209 INVESTMENT OF MONEY IN INTEREST AND SINKING FUND.

Texas Statutes

§ 1501.209 — INVESTMENT OF MONEY IN INTEREST AND SINKING FUND.

Texas § 1501.209

Code GVGovernment Code

This text of Texas § 1501.209 (INVESTMENT OF MONEY IN INTEREST AND SINKING FUND.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Government Code Code Ann. § 1501.209 (2026).

Text

Sec. 1501.209. INVESTMENT OF MONEY IN INTEREST AND SINKING FUND.

(a)The district's interest and sinking fund must be:

(1)immediately invested in direct obligations of the United States;

(2)deposited in a bank or savings and loan association, to the extent that the deposit is insured by an agency of the United States; or

(3)placed in a combination of investments described by Subdivision (1) and deposits described by Subdivision (2).

(b)An investment of the district's interest and sinking fund must mature and produce income, without reinvestment, at times and in amounts sufficient to pay:

(1)the principal of the district's bonds as it becomes due;

(2)interest on the district's bonds as it becomes due;

(3)any redemption premium on the redemption date; and

(4)any applicable fee of the

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Sec. 1501.209. INVESTMENT OF MONEY IN INTEREST AND SINKING FUND. (a) The district's interest and sinking fund must be:
(1) immediately invested in direct obligations of the United States;
(2) deposited in a bank or savings and loan association, to the extent that the deposit is insured by an agency of the United States; or
(3) placed in a combination of investments described by Subdivision (1) and deposits described by Subdivision (2).
(b) An investment of the district's interest and sinking fund must mature and produce income, without reinvestment, at times and in amounts sufficient to pay:
(1) the principal of the district's bonds as it becomes due;
(2) interest on the district's bonds as it becomes due;
(3) any redemption premium on the redemption date; and
(4) any applicable fee of the bank of payment.
(c) The district shall apply money that exceeds the amount needed under Subsection (b) to the payment of other debts of the district.
(d) On request of the water board that operates property purchased under this subchapter, the bank in which the interest and sinking fund of the district is maintained shall pay to the water board any money or investment in that fund that exceeds the amount needed under Subsection (b).