By Counts, et al. H.B. No. 1548
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financial assistance programs administered by the
1-3 Veterans' Land Board.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1
1-6 SECTION 1.01. Section 161.001, Natural Resources Code, is
1-7 amended to read as follows:
1-8 Sec. 161.001. Definitions. (a) In this chapter:
1-9 (1) "Board" means the Veterans' <Veterans> Land Board.
1-10 (2) "Commissioner" means the Commissioner of the
1-11 General Land Office.
1-12 (3) "Land office" means the General Land Office.
1-13 (4) "Program" means the Veterans' <Veterans> Land
1-14 Program.
1-15 (5) "Fund" means the veterans' <veterans> land fund.
1-16 (6) "Bonds" means general obligation <veterans land>
1-17 bonds issued by the board for the purpose of funding the program.
1-18 (7) "Veteran" means a person who:
1-19 (A)(i) served not less than 90 continuous days,
1-20 unless sooner <after September 16, 1940> discharged by reason of a
1-21 service-connected disability, on active duty in the Army, Navy, Air
1-22 Force, Coast Guard, United States Public Health Service (as
1-23 constituted under 42 U.S.C. 201 et seq.),<;> or Marine Corps of the
2-1 United States after September 16, 1940, and who on <and has not
2-2 been dishonorably discharged or released from any of those branches
2-3 as of> the date of filing an application under the program has not
2-4 been dishonorably discharged from the branch of the service in
2-5 which such person served; <his application, or who has completed>
2-6 (ii) has at least 20 years of active or
2-7 reserve military service as computed when determining the person's
2-8 eligibility to receive retired pay <creditable for retirement>
2-9 under applicable federal law <laws,>; or
2-10 (iii) has enlisted or received an <who has
2-11 completed all initial active duty training required as a condition
2-12 of enlistment or> appointment in the Texas National Guard, who has
2-13 completed all initial active duty training required as a condition
2-14 of the enlistment or appointment, and who on the date of filing the
2-15 person's application has not been dishonorably discharged from the
2-16 Texas National Guard;
2-17 (B) at the time of such person's <his>
2-18 enlistment, induction, commissioning, appointment, or drafting was
2-19 a bona fide resident of this state or has resided in this state at
2-20 least five years immediately before the date of filing an <his>
2-21 application under this chapter <for a loan>; and
2-22 (C) at the time of such person's <his>
2-23 application <for a loan> under this chapter is <a citizen of the
2-24 United States and> a bona fide resident of this state. The term
2-25 includes the unmarried surviving spouse of a veteran who died or
3-1 who is identified as missing in action if the deceased or missing
3-2 veteran meets the requirements in this section, with the exception
3-3 that the deceased or missing veteran need not have served 90
3-4 continuous days under Paragraph (A)(i) of this subdivision, and if
3-5 the deceased or missing veteran was a bona fide resident of the <in
3-6 the line of duty provided the deceased veteran was a bona fide
3-7 resident of this> state at the time of enlistment, induction,
3-8 commissioning, appointment or drafting. <In order for the
3-9 surviving spouse to qualify, the deceased veteran must meet the
3-10 requirements in this section with the exception that the deceased
3-11 veteran need not have served 90 continuous days.>
3-12 (b) Notwithstanding Subdivision (7) of Subsection (a) of
3-13 this section, the board may by rule change the definition of
3-14 "veteran" as necessary or appropriate to protect the best interests
3-15 of the program <in response to changes in the laws of the United
3-16 States as they may affect the program>.
3-17 SECTION 1.02. Section 161.061, Natural Resources Code, is
3-18 amended to read as follows:
3-19 Sec. 161.061. General Duties of Board. The board <Board>
3-20 shall:
3-21 (1) authorize and execute negotiable bonds as provided
3-22 by law;
3-23 (2) provide by resolution for use of the fund in a
3-24 manner that will effectuate the intent of the constitution and the
3-25 law;
4-1 (3) prescribe <fix> the interest rates as provided by
4-2 law;
4-3 (4) provide for the forfeiture of contracts of sale
4-4 and purchase and resale of forfeited land;
4-5 (5) conduct investigations it considers necessary; and
4-6 (6) formulate policies and rules necessary and not in
4-7 conflict with the law to ensure the proper administration and to
4-8 carry out the intent and purposes of the law.
4-9 SECTION 1.03. Subchapter C, Chapter 161, Natural Resources
4-10 Code, is amended by adding Section 161.074 to read as follows:
4-11 Sec. 161.074. BOND ENHANCEMENT AGREEMENTS. The board may,
4-12 at any time and from to time, enter into one or more bond
4-13 enhancement agreements which the board deems to be necessary or
4-14 appropriate to place the obligation of the board, as represented by
4-15 the bonds, in whole or in part, on the interest rate, currency,
4-16 cash flow, or other basis desired by the board, including, without
4-17 limitation, bond enhancement agreements commonly known as interest
4-18 rate swap agreements, currency swap agreements, forward payment
4-19 conversion agreements, or agreements providing for payments based
4-20 on levels of or changes in interest rates or currency exchange
4-21 rates, or agreements to exchange cash flows or a series of
4-22 payments, or agreements including, without limitation, options,
4-23 puts or calls to hedge payment, currency, rate, spread, or other
4-24 exposure, all upon such terms and conditions as may be approved by
4-25 the board. A bond enhancement agreement is an agreement for
5-1 professional services and shall contain the terms and conditions
5-2 and be for the period that the board approves. The fees and
5-3 expenses of the board in connection with the issuance of bonds and
5-4 the purchase and sale of land may be paid from moneys in the fund,
5-5 provided that any payments due from the board under any bond
5-6 enhancement agreement (other than fees and expenses) which relate
5-7 to the payment of debt service on any bonds shall constitute, and
5-8 for all purposes shall be deemed to be, payments of principal of
5-9 and interest on such bonds.
5-10 SECTION 1.04. The subchapter heading of subchapter D,
5-11 Chapter 161, Natural Resources Code, is amended to read as follows:
5-12 SUBCHAPTER D. GENERAL OBLIGATION BONDS
5-13 SECTION 1.05. Section 161.113, Natural Resources Code, is
5-14 amended to read as follows:
5-15 Sec. 161.113. INTEREST RATE. <(a)> The bonds shall bear
5-16 the rate or rates of interest prescribed by the board.
5-17 <(b) The weighted average annual interest rate of the bonds,
5-18 as that phrase is commonly and ordinarily used and understood in
5-19 the municipal bond market, may not be more than six percent in each
5-20 installment.>
5-21 SECTION 1.06. Section 161.114, Natural Resources Code, is
5-22 amended to read as follows:
5-23 Sec. 161.114. Payment and Maturity of Bonds. (a) The bonds
5-24 shall be payable as provided by the board and shall mature serially
5-25 or otherwise <not later than 40 years from their date>.
6-1 (b) Bonds previously issued shall mature according to their
6-2 provisions.
6-3 (c) The board shall determine the medium of payment for both
6-4 principal of and interest on the bonds.
6-5 (d) The board at its own option may make the bonds
6-6 redeemable or subject to tender for purchase before maturity at the
6-7 price and under the terms and conditions fixed by the board in the
6-8 resolution providing for the issuance and sale of the bonds.
6-9 SECTION 1.07. Section 161.116, Natural Resources Code, is
6-10 amended to read as follows:
6-11 Sec. 161.116. Manner of Execution. (a) The bonds shall be
6-12 executed by and on behalf of the board and the state as obligations
6-13 of the state in the manner provided in Subsection (b) of this
6-14 section.
6-15 (b) The bonds shall be signed by the chairman and the
6-16 executive secretary of the board and the seal of the board shall be
6-17 impressed on the bonds. In addition, the bonds shall be signed by
6-18 the governor and attested by the Secretary of State with the seal
6-19 of the state impressed on the bonds.
6-20 SECTION 1.08. Section 161.118, Natural Resources Code, is
6-21 amended to read as follows:
6-22 Sec. 161.118. Approval by Attorney General. Before bonds
6-23 are delivered to the purchasers, the record relating to the bonds
6-24 shall be examined by the attorney general. If the record
6-25 demonstrates that the bonds have been issued in accordance with the
7-1 constitution and this subchapter, the <and the record and> bonds
7-2 shall be approved by the attorney general.
7-3 SECTION 1.09. Section 161.119, Natural Resources Code, is
7-4 amended to read as follows:
7-5 Sec. 161.119. Registration With Comptroller. After the
7-6 bonds are approved by the attorney general, they shall be
7-7 registered in the office of the <state> comptroller of public
7-8 accounts.
7-9 SECTION 1.10. Section 161.122, Natural Resources Code, is
7-10 amended to read as follows:
7-11 Sec. 161.122. (RESERVED <PREFERENTIAL RIGHT OF PURCHASE>.
7-12 <Immediately after bonds are offered for sale, written notice shall
7-13 be given to the proper administrators of the various teacher
7-14 retirement funds, the permanent university fund, and the permanent
7-15 free school fund of the preferential right given by the
7-16 constitution to purchase the bonds offered for sale.>
7-17 SECTION 1.11. Section 161.123, Natural Resources Code, is
7-18 amended to read as follows:
7-19 Sec. 161.123. Notice for Bids on Bonds. <(a)> If the board
7-20 authorizes the issuance of a series of bonds and decides to call
7-21 for bids, it shall publish an appropriate notice at least one time
7-22 not less than 10 days before the date of the sale in a <daily
7-23 newspaper of general statewide circulation that is published not
7-24 less than seven times a week.>
7-25 <(b) The notice shall be published for the number of times
8-1 the board determines in one or more popularly> recognized financial
8-2 journal <journals> of general circulation.
8-3 SECTION 1.12. Section 161.124, Natural Resources Code, is
8-4 amended to read as follows:
8-5 Sec. 161.124. Security for Bid. The <At its option, the>
8-6 board may require bidders<, other than administrators of state
8-7 funds listed in Section 161.122 of this code,> to accompany their
8-8 bids with exchange or bank cashier's checks in an amount considered
8-9 adequate by the board to be a forfeit guaranteeing the acceptance
8-10 and payment for bonds covered by the bids and accepted by the
8-11 board.
8-12 SECTION 1.13. Section 161.125, Natural Resources Code, is
8-13 amended to read as follows:
8-14 Sec. 161.125. Sale of Bonds. Bonds may be sold (at public
8-15 or private sale) at a price or prices and on terms determined by
8-16 the board. <(a) No bonds may be sold for less than their face
8-17 value with accrued interest from their date and shall be sold after
8-18 competitive bidding to the highest and best bidder.>
8-19 <(b) The provisions of Subsection (a) of this section do not
8-20 apply to administrators of the state funds that are given a
8-21 priority if they exercise the right of priority to take the bonds
8-22 at the highest price bid by another within 15 days after notice is
8-23 given.>
8-24 <(c) If two or more administrators of state funds desire to
8-25 exercise their right of priority to purchase the bonds, the board
9-1 shall prorate the bonds to the administrators who desire to make
9-2 the purchase.>
9-3 SECTION 1.14. Section 161.128, Natural Resources Code, is
9-4 amended to read as follows:
9-5 Sec. 161.128. Bonds as Investments and Security. (a) Bonds
9-6 issued under <Article III, Section 49-b of the Texas Constitution,
9-7 and> this chapter are legal and authorized investments for banks,
9-8 savings banks, trust companies, building and loan associations,
9-9 insurance companies, fiduciaries, trustees, guardians, and for the
9-10 sinking funds of cities, towns, villages, counties, school
9-11 districts, and other political subdivisions and public agencies of
9-12 the state.
9-13 (b) The bonds<, if accompanied by unmatured coupons
9-14 appurtenant to them,> are legal and sufficient security for the
9-15 deposits in the amount of the par value of the bonds.
9-16 SECTION 1.15. Section 161.129, Natural Resources Code, is
9-17 amended to read as follows:
9-18 Sec. 161.129. Taxation of Bonds. Bonds <issued under
9-19 Article III, Section 49-b of the Texas Constitution, and laws
9-20 implementing that section of the constitution,> are exempt from any
9-21 tax by the state and by cities, towns, villages, counties, school
9-22 districts, and other political subdivisions and public agencies of
9-23 the state.
9-24 SECTION 1.16. Subchapter D, Chapter 161, Natural Resources
9-25 Code, is amended by adding Section 161.130 to read as follows:
10-1 Sec. 161.130. CONSTITUTIONAL APPROPRIATIONS. (a) If,
10-2 during the existence of the fund or during the time any general
10-3 obligation bonds are payable from such fund, the board determines
10-4 that there will not be sufficient money in such fund during the
10-5 following biennium available to pay principal of or interest on the
10-6 bonds or both principal and interest that are to come due and to be
10-7 paid from such fund during the following biennium, the comptroller
10-8 of public accounts shall transfer to such fund the first money
10-9 coming into the State Treasury not otherwise appropriated by the
10-10 constitution in amounts sufficient to pay the obligations.
10-11 (b) The money appropriated shall be used to pay the
10-12 obligations only if at the time the principal or interest or both
10-13 actually become due there is not sufficient money in such fund
10-14 available to pay the amount due.
10-15 SECTION 1.17. The subchapter heading of subchapter E,
10-16 Chapter 161, Natural Resources Code, is amended to read as follows:
10-17 SUBCHAPTER E. VETERANS' <VETERANS> LAND FUND
10-18 SECTION 1.18. Section 161.171, Natural Resources Code, is
10-19 amended to read as follows:
10-20 Sec. 161.171. MONEY AND LAND INCLUDED IN <VETERANS LAND>
10-21 FUND. (a) The veterans' <veterans> land fund shall include:
10-22 (1) land purchased by the board from money in the fund
10-23 <until the sale price, interest, and penalties due have been
10-24 received by the board>;
10-25 (2) money attributable to general obligation bonds
11-1 issued and sold by the board, including proceeds from the issuance
11-2 and sale of such bonds;
11-3 (3) money received from the sale or resale of land or
11-4 rights in land purchased with the proceeds from general obligation
11-5 bonds;
11-6 (4) money received from the sale or resale of land or
11-7 rights in land purchased with other money attributable to general
11-8 obligation bonds;
11-9 (5) proceeds derived from the sale or other
11-10 disposition of the board's interest in contracts for the sale of
11-11 any such land or rights in land;
11-12 (6) <(5)> interest and penalties received from the
11-13 sale or resale of such land or rights in the land;
11-14 (7) <(6)> bonuses, income, rents, royalties, and any
11-15 other pecuniary benefit received by the board from such land;
11-16 (8) <(7)> money received as indemnity or forfeiture
11-17 for the failure of any bidder for purchase of general obligation
11-18 bonds to comply with such person's <his> bid and accept and pay for
11-19 the bonds or for the failure of a bidder for purchase of land
11-20 comprising a part of the fund to comply with such person's <his>
11-21 bid and accept and pay for the land; and amounts received by the
11-22 board under any bond enhancement agreements with respect to any
11-23 such bonds; and
11-24 (9) <(8)> interest received from investments of this
11-25 money.
12-1 (b) Money in the fund shall be deposited in the State
12-2 Treasury to the credit of the fund.
12-3 <(c) The provisions of this section may not be construed to
12-4 prevent the board from accepting for a portion of a tract of
12-5 land.>
12-6 SECTION 1.19. Section 161.172, Natural Resources Code, is
12-7 amended to read as follows:
12-8 Sec. 161.172. (RESERVED <DEPOSIT AND USE OF BOND MONEY>.
12-9 <(a) Money attributable to bonds issued and sold under this
12-10 chapter shall be credited to the fund and shall be used to retire
12-11 the bonds and to pay interest on them.>
12-12 <(b) At the time there is sufficient money to retire the
12-13 bonds, money remaining in the fund over this amount or coming into
12-14 the fund at a later time shall be governed as provided in this
12-15 chapter.>
12-16 SECTION 1.20. Section 161.173, Natural Resources Code, is
12-17 amended to read as follows:
12-18 Sec. 161.173. INVESTMENT OF MONEY IN FUND <PAYMENT OF
12-19 PRINCIPAL AND INTEREST; INVESTMENTS>. (a) <The principal and
12-20 interest on bonds issued by the board shall be paid from money in
12-21 the fund as provided in the constitutional provision authorizing
12-22 the bonds.>
12-23 <(b)> Except as limited by Subsection (b) <(c)> of this
12-24 section, money in the fund that is not immediately committed to
12-25 paying principal of and interest on the bonds, to the purchase of
13-1 land, or to the payment of expenses as provided in this chapter may
13-2 be invested in:
13-3 (1) direct security repurchase agreements and reverse
13-4 security repurchase agreements made with state or national banks
13-5 domiciled in this state or with primary dealers as approved by the
13-6 Federal Reserve System;
13-7 (2) direct obligations of or obligations the principal
13-8 and interest of which are guaranteed by the United States;
13-9 (3) direct obligations of or obligations guaranteed by
13-10 the Federal Home Loan Banks, the Federal National Mortgage
13-11 Association, the Federal Farm Credit System, the Student Loan
13-12 Marketing Association, the Federal Home Loan Mortgage Corporation,
13-13 or a successor organization to one of those organizations;
13-14 (4) bankers' acceptances that:
13-15 (A) are eligible for purchase by members of the
13-16 Federal Reserve System;
13-17 (B) do not exceed 270 days to maturity; and
13-18 (C) are issued by a bank that has received the
13-19 highest short-term credit rating by a nationally recognized
13-20 investment rating firm;
13-21 (5) commercial paper that:
13-22 (A) does not exceed 270 days to maturity; and
13-23 (B) has received the highest short-term credit
13-24 rating by a nationally recognized investment rating firm;
13-25 (6) contracts written by the board in which the board
14-1 grants the purchaser the right to purchase securities in the
14-2 board's marketable securities portfolio at a specified price over a
14-3 specified period and for which the board is paid a fee and
14-4 specifically prohibits naked-option or uncovered option trading;
14-5 (7) obligations of a state or an agency, county, city,
14-6 or other political subdivision of a state and mutual funds composed
14-7 of these obligations;
14-8 (8) an investment instrument, obligation, or other
14-9 evidence of indebtedness the payment of which is directly or
14-10 indirectly guaranteed by the full faith and credit of the United
14-11 States;
14-12 (9) an investment, account, depository receipt, or
14-13 deposit that is fully:
14-14 (A) insured by the Federal Deposit Insurance
14-15 Corporation, the Federal Savings and Loan Insurance Corporation, or
14-16 a successor organization to one of those organizations; or
14-17 (B) secured by securities described by
14-18 Subdivision (2), (3), or (8) of this subsection;
14-19 (10) a collateralized mortgage obligation fully
14-20 secured by securities or mortgages issued or guaranteed by the
14-21 Government National Mortgage Association (GNMA) or any entity
14-22 described by Subdivision (3) of this subsection;
14-23 (11) a security or evidence of indebtedness issued by
14-24 the Farm Credit System Financial Assistance Corporation, the
14-25 Private Export Funding Corporation, or the Export-Import Bank; and
15-1 (12) any other investment authorized for investment of
15-2 state funds by the treasurer under Section 404.024, Government
15-3 Code.
15-4 (b) <(c)> The board may not invest in or purchase
15-5 obligations of a private corporation or other private business
15-6 entity doing business in the Republic of South Africa unless the
15-7 corporation or other entity:
15-8 (1) has:
15-9 (A) adopted the Statement of Principles for
15-10 South Africa as they existed in 1987, as described in the Report on
15-11 the Signatory Companies to the Statement of Principles for South
15-12 Africa published by Arthur D. Little, Inc., Cambridge,
15-13 Massachusetts, and has obtained a performance rating in Category 1
15-14 or 2 of the Statement of Principles for South Africa rating system
15-15 as determined by Arthur D. Little, Inc.; or
15-16 (B) agreed to the Code of Conduct that is
15-17 enforced by the United States Department of State under Section
15-18 208, Comprehensive Anti-Apartheid Act of 1986 (Pub. L. No. 99-440)
15-19 and has received a rating of "Making Satisfactory Progress"; and
15-20 (2) does not supply strategic products or services for
15-21 use by the government, military, or police of the Republic of South
15-22 Africa.
15-23 (c) <(d)> In this section:
15-24 (1) "Direct security repurchase agreement" means an
15-25 agreement under which the board buys, holds for a specified time,
16-1 and then sells back any of the following securities, obligations,
16-2 or participation certificates:
16-3 (A) United States government securities;
16-4 (B) direct obligations of or obligations the
16-5 principal and interest of which are guaranteed by the United
16-6 States;
16-7 (C) direct obligations of or obligations
16-8 guaranteed by the Federal Home Loan Banks, the Federal National
16-9 Mortgage Association, the Federal Farm Credit System, the Student
16-10 Loan Marketing Association, the Federal Home Loan Mortgage
16-11 Corporation, or a successor organization to one of those
16-12 organizations; or
16-13 (D) any other investment instrument, obligation,
16-14 or other evidence of indebtedness the payment of which is directly
16-15 or indirectly guaranteed by the full faith and credit of the United
16-16 States.
16-17 (2) "Doing business in the Republic of South Africa"
16-18 means conducting or performing manufacturing, assembly, or
16-19 warehousing operations within the Republic of South Africa and for
16-20 a bank or other financial institution, lending money to the
16-21 government of the Republic of South Africa or any of its agencies
16-22 or instrumentalities.
16-23 (3) "Market value" means the fair and reasonable
16-24 prevailing price at which a security is being sold on the open
16-25 market at the time of the appraisement of the security by the
17-1 board.
17-2 (4) "Reverse security repurchase agreement" means an
17-3 agreement under which the board sells and after a specified time
17-4 buys back any of the securities, obligations, or participation
17-5 certificates listed in Paragraphs (A) through (D) of Subdivision
17-6 (1) of this subsection.
17-7 (5) "Strategic products or services" means articles
17-8 designated as arms, ammunition, or implements of war as provided by
17-9 22 Code of Federal Regulations Part 121 or data processing
17-10 equipment or computers sold for military or police use or for use
17-11 in connection with restriction on travel within the Republic of
17-12 South Africa by residents of that country.
17-13 SECTION 1.21. Section 161.174, Natural Resources Code, is
17-14 amended to read as follows:
17-15 Sec. 161.174. USE OF FUND TO PAY PRINCIPAL AND INTEREST.
17-16 <DIVISIONS; USE OF MONEY IN DIVISIONS TO PAY FOR VARIOUS BOND
17-17 ISSUES.> The principal of and interest on bonds issued by the
17-18 board shall be paid from money in the fund as provided in the
17-19 constitutional provision authorizing the bonds. <(a) A division
17-20 consists of money attributable to bonds issued and sold under a
17-21 single constitutional authorization and land purchased with money
17-22 from that issue.>
17-23 <(b) If a division of the fund contains sufficient money to
17-24 retire bonds secured by the division, the money attributable to
17-25 that division, except that portion necessary to retire bonds in
18-1 that division, may be used at the discretion and direction of the
18-2 board to pay principal of and interest on and authorized expenses
18-3 for other bonds issued and sold by the board. However, the amount
18-4 of money necessary to retire bonds in the division shall be set
18-5 aside and shall remain a part of that division for the purpose of
18-6 retiring those bonds.>
18-7 <(c) No use of money as provided in Subsection (b) of this
18-8 section may be made contrary to the rights of a holder of bonds
18-9 issued and sold by the board or violative of a contract to which
18-10 the board is a party.>
18-11 SECTION 1.22. Section 161.175, Natural Resources Code, is
18-12 amended to read as follows:
18-13 Sec. 161.175. USE OF FUND TO PAY <FOR> EXPENSES RELATED TO
18-14 THE LAND. (a) The board may use money in the fund attributable to
18-15 bonds that have been issued and sold to pay:
18-16 (1) expenses of surveying and monumenting the land and
18-17 the tracts of land;
18-18 (2) the cost of constructing roads on the land or the
18-19 tracts of land;
18-20 (3) legal fees, recordation fees, and advertising
18-21 costs arising from the purchase and sale or resale of the land and
18-22 the tracts of land; and
18-23 (4) other similar costs necessary or incidental to the
18-24 purchase and sale of land acquired by the board.
18-25 (b) These expenses shall be added to the price of the land
19-1 when sold or resold by the board.
19-2 (c) The board, at its discretion, may purchase supplies,
19-3 materials, services, and equipment for use by the board in
19-4 connection with improvements, repairs to, or maintenance of land,
19-5 and roadways and improvements located on land, undertaken by the
19-6 board under this Chapter to make the land more marketable or
19-7 useable, without the necessity of soliciting or obtaining
19-8 competitive bids. <No money in the fund before November 11, 1967,
19-9 may be used to pay the expenses listed in Subsection (a) of this
19-10 section until there is sufficient money in the division to retire
19-11 all bonds secured by the division, at which time, all money except
19-12 that needed to retire the bonds secured by the division, which
19-13 shall be retained in the division to retire the bonds, may be used
19-14 to pay the expenses as fully as the money attributable to bonds.>
19-15 SECTION 1.23. Section 161.176, Natural Resources Code, is
19-16 amended to read as follows:
19-17 Sec. 161.176. USE OF FUND TO PAY BOND EXPENSES. <(a)> The
19-18 board may use money in the fund attributable to bonds issued and
19-19 sold to pay:
19-20 (1) legal fees and fees for financial advice necessary
19-21 in the opinion of the board to the sale of bonds;
19-22 (2) the expense of publishing notice of sale of an
19-23 installment of bonds;
19-24 (3) the expense of printing the bonds;
19-25 (4) the expenses of issuance of the bonds, including
20-1 the actual costs of travel, lodging, and meals of board members,
20-2 officers or employees of the board, the <state> comptroller of
20-3 public accounts, the State Treasurer, and the attorney general that
20-4 are necessary in the opinion of the board to effectuate the
20-5 issuance, rating, and delivery of the bonds;
20-6 (5) the cost of manually signing the bonds;
20-7 (6) remuneration to any agent employed by the board to
20-8 pay the principal of and interest on the bonds;
20-9 (7) any amounts required to be paid to maintain the
20-10 federal tax exemption of interest on the bonds; and
20-11 (8) all other costs, fees, and expenses relating to
20-12 the issuance of the bonds.
20-13 <(b) No money in a division of the fund created before
20-14 November 11, 1967, may be used to pay the expenses listed in
20-15 Subsection (a) of this section until there is sufficient money for
20-16 the division to retire all bonds secured by the division, at which
20-17 time all money, except that which may be needed to retire the
20-18 bonds, may be used to pay the expenses under Subsection (a) of this
20-19 section as fully as money attributable to bonds issued and sold in
20-20 the future. The money in the division needed to retire the bonds
20-21 shall remain in the division.>
20-22 SECTION 1.24. Section 161.179, Natural Resources Code, is
20-23 amended to read as follows:
20-24 Sec. 161.179. SALE OF LAND AND LAND CONTRACTS <LEGISLATIVE
20-25 APPROPRIATIONS>. Notwithstanding any other provision of this
21-1 chapter, the board may sell, at public or private sale, with or
21-2 without public bidding, any or all of the land contracts and
21-3 related land. Proceeds from the sale shall be deposited in the
21-4 fund or account from which such contracts or related land were sold
21-5 and otherwise applied in the manner set forth in this chapter,
21-6 except that at the direction of the board such sale proceeds may be
21-7 used by the board, together with other available money, to
21-8 discharge, pay, or redeem in whole or in part, outstanding bonds
21-9 issued by the board. <To the extent not otherwise appropriated by
21-10 the constitution:>
21-11 <(a) During the existence of the fund, if the board
21-12 determines that there will not be sufficient money in the fund
21-13 during the following biennium to pay principal of or interest on
21-14 the bonds or both principal and interest that are to come due
21-15 during the following biennium, the legislature shall appropriate
21-16 from the General Revenue Fund sufficient money to pay the
21-17 obligations.>
21-18 <(b) The money appropriated shall be used to pay the
21-19 obligations only if at the time the principal or interest or both
21-20 actually become due there is not sufficient money in the fund to
21-21 pay the amount due.>
21-22 SECTION 1.25. Subchapter E, Chapter 161, Natural Resources
21-23 Code, is amended by adding Section 161.180 to read as follows:
21-24 Sec. 161.180. TEMPORARY TRANSFERS. Amounts temporarily
21-25 transferred from the fund to the veterans' housing assistance fund
22-1 or the veterans' housing assistance fund II pursuant to the Texas
22-2 Constitution shall be returned to the fund as soon as practicable.
22-3 Investment earnings allocated by the board to the transferred
22-4 amounts shall be credited to the fund as if the transfer had not
22-5 been made.
22-6 SECTION 1.26. Section 161.211, Natural Resources Code, is
22-7 amended to read as follows:
22-8 Sec. 161.211. (RESERVED <PURCHASE OF LAND AND PAYMENT OF
22-9 BONDS>. <(a) A series of bonds is all bonds issued and sold in a
22-10 single transaction as a single installment of bonds.>
22-11 <(b) To the extent not inconsistent with the constitution,
22-12 money attributable to any series of bonds issued and sold by the
22-13 board may be used for the purchase of land that is likewise located
22-14 and owned, if the land is sold as provided in this chapter, for a
22-15 period ending eight years after the date of sale of the series of
22-16 bonds.>
22-17 <(c) As much of the money as is necessary to pay interest on
22-18 the bonds issued and sold shall be set aside for that purpose in
22-19 accordance with the resolution adopted by the board authorizing the
22-20 issuance and sale of the series of bonds.>
22-21 <(d) At the end of the eight-year period, and until there is
22-22 sufficient money to retire all the bonds, the money shall be set
22-23 aside to retire the bonds issued and sold and to pay interest on
22-24 them, together with any expenses, in accordance with the resolution
22-25 authorizing the issuance and sale of the additional bonds. Money
23-1 coming into the fund not necessary to retire the bonds and pay
23-2 interest on them shall be governed as provided in this chapter, to
23-3 the extent not inconsistent with the constitution.>
23-4 SECTION 1.27. Section 161.216, Natural Resources Code, is
23-5 amended to read as follows:
23-6 Sec. 161.216. Cost of Land to Board. Except for forfeited
23-7 land that may be resold by <to> the board at less than actual cost
23-8 under Section 161.319 of this code, land shall not be sold by <to>
23-9 the board at less than its actual cost.
23-10 SECTION 1.28. Section 161.222, Natural Resources Code, is
23-11 amended to read as follows:
23-12 Sec. 161.222. Purchase Payments. (a) The purchaser shall
23-13 make an initial payment in an amount set by the board's rules for
23-14 land sold under this chapter. <In no event shall the payment be
23-15 more than $1,000 together with an additional down payment as
23-16 provided in Sections 161.175 and 161.231 through 161.234 of this
23-17 code or Subchapter G of this chapter>.
23-18 (b) The balance of the selling price shall be amortized over
23-19 a period determined by the board not to exceed 40 years together
23-20 with interest at a rate or rates (fixed, variable, floating or
23-21 otherwise) as determined by the board.
23-22 SECTION 1.29. Section 161.319, subchapter H of Chapter 161,
23-23 Natural Resources Code, is amended to read as follows:
23-24 Sec. 161.319. Resale of Forfeited Land. (a) Resale of
23-25 forfeited land under this chapter may be made to the highest
24-1 bidder, <but the sale shall be made only to a qualified purchaser
24-2 under Article III, Section 49-b of the Texas Constitution,> and
24-3 under terms and conditions and at the time and in the manner
24-4 prescribed by the board in its rules, the provisions of this
24-5 chapter notwithstanding.
24-6 (b) The board may reject any and all bids.
24-7 (c) If the successful bidder refuses to execute a contract
24-8 of sale and purchase, the money submitted with such person's <his>
24-9 bid is forfeited and shall be deposited in the State Treasury and
24-10 credited to the fund.
24-11 ARTICLE 2
24-12 SECTION 2.01. Section 162.001, Natural Resources Code, is
24-13 amended to read as follows:
24-14 Sec. 162.001. Definitions. (a) In this chapter:
24-15 (1) "Board" means the Veterans' Land Board.
24-16 (2) "Fund" means the veterans' housing assistance
24-17 fund.
24-18 (3) "Home" means a dwelling within this state in which
24-19 a veteran intends to reside as such veteran's <his> principal
24-20 residence.
24-21 (4) "Lending institution" means a bank, trust company,
24-22 savings bank, national banking association, savings and loan
24-23 association, building and loan association, mortgage banker,
24-24 mortgage company, credit union, life insurance company, or other
24-25 financial institution that customarily provides service or aids in
25-1 the financing of mortgages on single-family residential housing
25-2 which has been approved for participation in the program by the
25-3 board. The term includes a holding company for any of the
25-4 foregoing.
25-5 (5) "Loan" means a veterans' housing assistance loan
25-6 made or acquired by the board under this chapter secured by a
25-7 mortgage on a veteran's home.
25-8 (6) "Program" means the Veterans' Housing Assistance
25-9 Program.
25-10 (7) "Commission" means the Texas Veterans Commission.
25-11 (8) "Veteran" means a person who:
25-12 (A)(i) served not less than 90 continuous days,
25-13 unless sooner discharged by reason of a service-connected
25-14 disability, on active duty in the Army, Navy, Air Force, Coast
25-15 Guard, United States Public Health Service (as constituted under 42
25-16 U.S.C. 201 et seq.), or Marine Corps of the United States after
25-17 September 16, 1940, and who on the date of filing a <his> loan
25-18 application has not been dishonorably discharged from the branch of
25-19 the service in which such person <he> served;
25-20 (ii) has at least 20 years of active or
25-21 reserve military service as computed when determining the person's
25-22 eligibility to receive retired pay under applicable federal law; or
25-23 (iii) has enlisted or received an
25-24 appointment in the Texas National Guard, who has completed all
25-25 initial active duty training required as a condition of the
26-1 enlistment or appointment, and who on the date of filing the
26-2 person's loan application has not been dishonorably discharged from
26-3 the Texas National Guard;
26-4 (B) at the time of such person's <his>
26-5 enlistment, induction, commissioning, appointment, or drafting was
26-6 a bona fide resident of this state or has resided in this state at
26-7 least five years immediately before the date of filing an <his>
26-8 application for a loan; and
26-9 (C) at the time of such person's <his>
26-10 application for a loan under this chapter is <a citizen of the
26-11 United States and> a bona fide resident of this state. The term
26-12 includes the unmarried surviving spouse of a veteran who died or
26-13 who is identified as missing in action <in the line of duty> if the
26-14 deceased or missing veteran meets the requirements in this section,
26-15 with the exception that the deceased or missing veteran need not
26-16 have served 90 continuous days under Paragraph (A)(i) of this
26-17 subdivision, and if the deceased or missing veteran was a bona fide
26-18 resident of the state at time of enlistment, induction,
26-19 commissioning, appointment, or drafting.
26-20 (b) Notwithstanding Subdivision (8) of Subsection (a) of
26-21 this section, the board may by rule change the definition of
26-22 "veteran" as necessary or appropriate to protect the best interests
26-23 of the program <in response to changes in the laws of the United
26-24 States as they may affect the program>.
26-25 SECTION 2.02. Section 162.001(a), Natural Resources Code, is
27-1 amended by adding subdivision (9) to read as follows:
27-2 (9) "Veterans' housing assistance fund" means the
27-3 Veterans' Housing Assistance Fund established pursuant to Article
27-4 III, Section 49-b-1 of the Texas Constitution.
27-5 SECTION 2.03. Section 162.001(a), Natural Resources Code, is
27-6 amended by adding subdivision (9) to read as follows:
27-7 (9) "Veterans' housing assistance fund" means the
27-8 Veterans' Housing Assistance Fund established pursuant to Article
27-9 III, Section 49-b-1 of the Texas Constitution or the Veterans'
27-10 Housing Assistance Fund II established pursuant to Article III,
27-11 Section 49-b-2 of the Texas Constitution; provided that each such
27-12 fund shall be separate and distinct from the other such fund and
27-13 the provisions of this chapter dealing with the fund shall relate
27-14 to each such fund separately and to the assets, liabilities and
27-15 administration of that fund.
27-16 SECTION 2.04. Section 162.002, Natural Resources Code, is
27-17 amended to read as follows:
27-18 Sec. 162.002. Money and Interests Included in the Veterans'
27-19 Housing Assistance Fund. (a) The veterans' housing assistance
27-20 fund shall include:
27-21 (1) any interest of the board in <all> home mortgage
27-22 loans made from money in such fund to veterans pursuant to this
27-23 chapter including any insurance thereon or on the homes<, until the
27-24 principal amount together with any interest and penalties due have
27-25 been received by the board>;
28-1 (2) the proceeds derived from the sale or other
28-2 disposition of the board's interest in such home mortgage loans;
28-3 (3) <(2)> the money attributable to any bonds issued
28-4 and sold by the board to provide money for such <the> fund which
28-5 shall include but shall not be limited to the proceeds from the
28-6 issuance and sale of such bonds;
28-7 (4) <(3)> income, rents, and any other pecuniary
28-8 benefit received by the board as a result of making these loans;
28-9 (5) <(4)> sums received by way of indemnity or
28-10 forfeiture for the failure of any bidder for the purchase of any
28-11 such bonds to comply with such person's <his> bid and accept and
28-12 pay for such bonds; and amounts received by the board under any
28-13 bond enhancement agreements with respect to any such bonds;
28-14 (6) <(5)> interest received from investments of any
28-15 such money; and
28-16 (7) <(6)> any equitable interest in properties
28-17 encumbered under this program and attributable to such fund.
28-18 (b) Money in the fund shall be deposited in the State
28-19 Treasury to the credit of such <the> fund.
28-20 SECTION 2.05. Subchapter A, Chapter 162, Natural Resources
28-21 Code, is amended by adding Section 162.005 to read as follows:
28-22 Sec. 162.005. SALE OF LOANS. Notwithstanding any other
28-23 provision of this chapter, the board may sell, at public or private
28-24 sale, with or without public bidding, any or all of the loans in
28-25 the fund. Proceeds from the sale shall be deposited in such fund
29-1 and otherwise applied in the manner set forth in this chapter,
29-2 except that at the direction of the board such sale proceeds may be
29-3 used by the board, together with other available money, to
29-4 discharge, pay, or redeem, in whole or in part, outstanding bonds
29-5 issued by the board under this chapter.
29-6 SECTION 2.06. Subchapter A, Chapter 162, Natural Resources
29-7 Code, is amended by adding Section 162.006 to read as follows:
29-8 Sec. 162.006. TEMPORARY TRANSFERS. Amounts temporarily
29-9 transferred from either veterans' housing assistance fund to the
29-10 veterans' land fund or to the other veterans' housing assistance
29-11 fund pursuant to the Texas Constitution shall be returned to such
29-12 fund as soon as practicable. Investment earnings allocated by the
29-13 board to the transferred amounts shall be credited to such fund as
29-14 if the transfer had not been made.
29-15 SECTION 2.07. Section 162.011, Natural Resources Code, is
29-16 amended to read as follows:
29-17 Sec. 162.011. Loans. (a) The board shall make or acquire
29-18 loans with money from the veterans' housing assistance fund in
29-19 accordance with this chapter and the rules adopted by the board.
29-20 (b) To qualify for a loan under this chapter, a person must
29-21 be a veteran at the time such person <he> applies for the loan. If
29-22 an eligible veteran dies after filing an application, the surviving
29-23 spouse may complete the transaction.
29-24 (c) The <A loan under this chapter may not exceed $45,000
29-25 and the> final principal payment on any <the> loan under this
30-1 chapter shall be made not later than 40 years after the date of the
30-2 loan. The Board shall determine the maximum principal amount of
30-3 loans to any veteran that may be outstanding at any time; provided
30-4 that a loan under this chapter to a veteran to finance the
30-5 acquisition of a home may not exceed $45,000.<, and such a loan may
30-6 not previously have been granted to the same veteran under this
30-7 chapter. The board in its discretion may waive this requirement
30-8 for circumstances the board deems appropriate, including but not
30-9 limited to veterans who financed homes with a loan under this
30-10 chapter who are forced to move due to a change in employment or
30-11 because their homes are condemned through no fault of the veteran>.
30-12 (d) The board shall obtain insurance covering at least 50
30-13 percent of all losses anticipated in connection with veteran
30-14 payment defaults on loans secured by first or second mortgages,
30-15 based upon the advice of one or more qualified consultants to the
30-16 board as to potential losses which may be reasonably expected on
30-17 the loans as determined by analysis, including but not limited to
30-18 actual experience in the residential mortgage lending industry on
30-19 similar types of mortgage loans, or, in the alternative, the board
30-20 shall obtain insurance which shall insure repayment of at least 50
30-21 percent of the outstanding principal amount of all loans in the
30-22 event of the nonpayment of the loans by the veterans.
30-23 (e) <Funds approved for disbursement under this chapter
30-24 shall be forwarded directly to a lending institution.>
30-25 <(f)> All fees to be charged to a veteran receiving a loan
31-1 under this chapter must be approved by the board. The board may
31-2 enter into contracts with lending institutions to assist in
31-3 processing, originating, servicing, or administering loans under
31-4 this chapter. Any fees and expenses incurred in connection with a
31-5 loan, including the cost of insurance, may be charged to the
31-6 veteran and made a part of the veteran's payments.
31-7 SECTION 2.08. Section 162.013, Natural Resources Code, is
31-8 amended to read as follows:
31-9 Sec. 162.013. Interest Rate. A loan under this chapter
31-10 shall bear a <an interest> rate or rates of interest (fixed,
31-11 variable, floating or otherwise) as determined <fixed> by the
31-12 board. The board may set the interest rate or rates to provide a
31-13 margin over the rate paid by the board on its bonds issued under
31-14 this chapter. The difference between the cost of the money to the
31-15 board and the interest rate or rates charged to a veteran may be
31-16 used in whole or in part to defray the expense of administering the
31-17 program. To assure the maximum benefit of the program to the
31-18 veteran, the board shall adopt rules relative to the fees, charges,
31-19 and interest rates charged by the lending institutions on the
31-20 financing of the home with money other than from the fund and shall
31-21 limit to the maximum extent practical such fees, charges, and
31-22 interest rates to those which would be collected by the lending
31-23 institution in the normal course of its residential mortgage
31-24 lending business.
31-25 SECTION 2.09. Section 162.015, Natural Resources Code, is
32-1 amended to read as follows:
32-2 Sec. 162.015. Initial Payment or Equity. The board may
32-3 require an initial payment on a loan <of not more than five percent
32-4 of the loan> or may require an investment in the home by the
32-5 veteran in an amount or amounts set by the board's rules under this
32-6 chapter <not to exceed five percent of the amount of the loan>.
32-7 SECTION 2.10. Section 162.031, Natural Resources Code, is
32-8 amended to read as follows:
32-9 Sec. 162.031. Issuance and Sale of Bonds; Disposition of
32-10 Proceeds. (a) By appropriate action, the board may provide by
32-11 resolution for the issuance and sale of negotiable bonds authorized
32-12 by the constitution, and the proceeds shall be a part of the fund;
32-13 provided that the proceeds of bonds issued pursuant to the
32-14 authority of Article III, Section 49-b-1 for the purpose of making
32-15 loans to veterans shall be a part of the veterans' housing
32-16 assistance fund established by that constitutional provision and
32-17 the proceeds of bonds issued pursuant to the authority of Article
32-18 III, Section 49-b-2 for the purpose of making loans to veterans
32-19 shall be a part of the veterans' housing assistance fund
32-20 established by that constitutional provision.
32-21 (b) The board may use money in the fund attributable to
32-22 bonds issued to provide money for such fund to pay all costs of
32-23 issuance of such <the> bonds, including costs, fees, and expenses
32-24 of the sort the board is authorized to pay from the veterans' land
32-25 fund in connection with the issuance of the veterans' land bonds.
33-1 SECTION 2.11. Section 162.034, Natural Resources Code, is
33-2 amended to read as follows:
33-3 Sec. 162.034. Payment and Maturity of Bonds. (a) The bonds
33-4 shall be payable as provided by the board and shall mature serially
33-5 or otherwise <not later than 40 years from the date of their
33-6 issuance>.
33-7 (b) The board may make the bonds redeemable or subject to
33-8 tender for purchase before maturity at the price and under the
33-9 terms and conditions fixed by the board in the resolution providing
33-10 for the issuance and sale of the bonds.
33-11 SECTION 2.12. Section 162.036, Natural Resources Code, is
33-12 amended to read as follows:
33-13 Sec. 162.036. Manner of Execution. (a) The bonds shall be
33-14 executed by and on behalf of the board and the state as obligations
33-15 of the state in the manner provided in Subsection (b) of this
33-16 section.
33-17 (b) The bonds shall be signed by the chairman and the
33-18 executive secretary of the board and the seal of the board shall be
33-19 impressed on the bonds. In addition, the bonds shall be signed by
33-20 the governor and attested by the secretary of state with the seal
33-21 of the state impressed on the bonds.
33-22 SECTION 2.13. Section 162.044, Natural Resources Code, is
33-23 amended to read as follows:
33-24 Sec. 162.044. Sale of Bonds. Bonds <The bonds> may be sold
33-25 (at public or private sale) at a price or prices and on terms
34-1 determined by the board <after competitive bidding to the highest
34-2 and best bidder provided the bonds are sold for not less than par
34-3 value and accrued interest>.
34-4 SECTION 2.14. Section 162.047, Natural Resources Code, is
34-5 amended to read as follows:
34-6 Sec. 162.047. Bonds as Investments and Security. (a) Bonds
34-7 issued under <Article III, Section 49-b-1, of the Texas
34-8 Constitution and> this chapter are legal and authorized investments
34-9 for banks, savings banks, trust companies, building and loan
34-10 associations, insurance companies, fiduciaries, trustees,
34-11 guardians, and the sinking funds of cities, towns, villages,
34-12 counties, school districts, and other political subdivisions and
34-13 public agencies of the state.
34-14 (b) The bonds are legal and sufficient security for the
34-15 deposits in the amount of the par value of the bonds.
34-16 SECTION 2.15. Section 162.050, Natural Resources Code, is
34-17 amended to read as follows:
34-18 Sec. 162.050. Constitutional Appropriations. (a) If,
34-19 during the existence of the fund or during the time any general
34-20 obligation bonds are payable from such <the> fund, the board
34-21 determines that there will not be sufficient money in such <the>
34-22 fund during the following biennium available to pay principal of or
34-23 interest on the bonds or both principal and interest that are to
34-24 come due and to be paid from such fund during the following
34-25 biennium, the comptroller of public accounts shall transfer to such
35-1 <the> fund the first money coming into the State Treasury not
35-2 otherwise appropriated by the constitution in amounts sufficient to
35-3 pay the obligations.
35-4 (b) The money appropriated shall be used to pay the
35-5 obligations only if at the time the principal or interest or both
35-6 actually become due there is not sufficient money in such <the>
35-7 fund available to pay the amount due.
35-8 SECTION 2.16. Subchapter C, Chapter 162, Natural Resources
35-9 Code, is amended by adding Section 162.051 to read as follows:
35-10 Sec. 162.051. PURCHASE AND DESTRUCTION OF BONDS. (a) The
35-11 board may use money in the fund to purchase on the open market any
35-12 bonds it has issued and sold to provide money for such fund, and
35-13 the debt represented by these bonds when purchased is considered
35-14 canceled.
35-15 (b) Bonds purchased by the board under Subsection (a) of
35-16 this section shall be mutilated, burned or otherwise destroyed by
35-17 the State Treasurer, who shall certify this fact to the board under
35-18 the seal of office.
35-19 (c) No further interest shall be paid on these bonds.
35-20 SECTION 2.17. Subchapter C, Chapter 162, Natural Resources
35-21 Code, is amended by adding Section 162.052 to read as follows:
35-22 Sec. 162.052. BOND ENHANCEMENT AGREEMENTS. The board may,
35-23 at any time and from to time, enter into one or more bond
35-24 enhancement agreements which the board deems to be necessary or
35-25 appropriate to place the obligation of the board, as represented by
36-1 the bonds, in whole or in part, on the interest rate, currency,
36-2 cash flow, or other basis desired by the board, including, without
36-3 limitation, bond enhancement agreements commonly known as interest
36-4 rate swap agreements, currency swap agreements, forward payment
36-5 conversion agreements, or agreements providing for payments based
36-6 on levels of or changes in interest rates or currency exchange
36-7 rates, or agreements to exchange cash flows or a series of
36-8 payments, or agreements including, without limitation, options,
36-9 puts or calls to hedge payment, currency, rate, spread, or other
36-10 exposure, all upon such terms and conditions as may be approved by
36-11 the board. A bond enhancement agreement is an agreement for
36-12 professional services and shall contain the terms and conditions
36-13 and be for the period that the board approves. The fees and
36-14 expenses of the board in connection with the issuance of bonds and
36-15 the making of loans may be paid from moneys in the related fund,
36-16 provided that any payments due from the board under any bond
36-17 enhancement agreement (other than fees and expenses) which relate
36-18 to the payment of debt service on any bonds shall constitute, and
36-19 for all purposes shall be deemed to be, payments of principal of
36-20 and interest on such bonds.
36-21 ARTICLE 3
36-22 SECTION 3.01. The Natural Resources Code is amended by
36-23 adding chapter 164, to read as follows:
36-24 CHAPTER 164. VETERANS' FINANCIAL ASSISTANCE PROGRAM
36-25 Sec. 164.001. PURPOSE AND POLICY. (a) The legislature
37-1 declares that it is the policy of the state to provide financial
37-2 assistance to veterans of the state in recognition of their service
37-3 to their state and the United States of America.
37-4 (b) The legislature declares that existing mechanisms for
37-5 implementing the policy stated in subsection (a) of this section
37-6 may be enhanced by adoption of this chapter and implementation of
37-7 the financial assistance programs authorized hereby.
37-8 (c) The legislature finds that this chapter and the
37-9 financial assistance programs authorized hereby are in furtherance
37-10 of a public purpose.
37-11 Sec. 164.002. DEFINITIONS. (a) In this chapter:
37-12 (1) "Board" means the Veterans' Land Board.
37-13 (2) "Bonds" means the revenue bonds issued by the
37-14 board pursuant to this chapter.
37-15 (3) "Financial assistance" means the purchase of land
37-16 and the sale thereof to veterans and the making of home mortgage
37-17 loans to veterans, all as provided for in this chapter.
37-18 (4) "Home" means a dwelling within this state in which
37-19 a veteran intends to reside as such veteran's principal residence.
37-20 (5) "Lending institution" means a bank, trust company,
37-21 savings bank, national banking association, savings and loan
37-22 association, building and loan association, mortgage banker,
37-23 mortgage company, credit union, life insurance company, or other
37-24 financial institution that customarily provides service or aids in
37-25 the financing of mortgages on single-family residential housing
38-1 which has been approved for participation by the board. This
38-2 includes a holding company for any of the foregoing.
38-3 (6) "Veteran" means a person who:
38-4 (A)(i) served not less than 90 continuous days,
38-5 unless sooner discharged by reason of a service-connected
38-6 disability, on active duty in the Army, Navy, Air Force, Coast
38-7 Guard, United States Public Health Service (as constituted under 42
38-8 U.S.C. 201 et seq.), or Marine Corps of the United States after
38-9 September 16, 1940, and who on the date of filing an application
38-10 for financial assistance under this chapter has not been
38-11 dishonorably discharged from the branch of the service in which
38-12 such person served;
38-13 (ii) has at least 20 years of active or
38-14 reserve military service as computed when determining the person's
38-15 eligibility to receive retired pay under applicable federal law; or
38-16 (iii) has enlisted or received an
38-17 appointment in the Texas National Guard, who has completed all
38-18 initial active duty training required as a condition of the
38-19 enlistment or appointment, and who on the date of filing the
38-20 person's application has not been dishonorably discharged from the
38-21 Texas National Guard;
38-22 (B) at the time of such person's enlistment,
38-23 induction, commissioning, appointment, or drafting was a bona fide
38-24 resident of this state or has resided in this state at least one
38-25 year immediately before the date of filing an application; and
39-1 (C) at the time of such person's application
39-2 under this chapter is a bona fide resident of this state. The term
39-3 includes the unmarried surviving spouse of a veteran who died or
39-4 who is identified as missing in action if the deceased or missing
39-5 veteran meets the requirements in this section, with the exception
39-6 that the deceased or missing veteran need not have served 90
39-7 continuous days under Paragraph (A)(i) of this subdivision, and if
39-8 the deceased or missing veteran was a bona fide resident of the
39-9 state at the time of enlistment, induction, commissioning,
39-10 appointment or drafting.
39-11 (b) Notwithstanding Subdivision (6) of Subsection (a) of
39-12 this section, the board may by rule change the definition of
39-13 "veteran" as necessary or appropriate to protect the best interests
39-14 of the program.
39-15 Sec. 164.003. FINANCIAL ASSISTANCE PROGRAMS. The board may
39-16 establish one or more programs for providing financial assistance
39-17 to veterans under this chapter. Any such program may be limited to
39-18 the purpose of purchasing land and making the sale thereof to
39-19 veterans or the purpose of making home mortgage loans to veterans,
39-20 or may be for both such purposes. To the extent any such financial
39-21 assistance program is for the purpose of purchasing land and making
39-22 the sale thereof to veterans, such program shall be administered,
39-23 to the extent consistent with this chapter and otherwise deemed
39-24 practicable and desirable by the board, in accordance with the
39-25 board's Veterans' Land Program, and to the extent any such
40-1 financial assistance program is for the purpose of making home
40-2 mortgage loans to veterans, such program shall be administered, to
40-3 the extent consistent with this chapter and otherwise deemed
40-4 practicable and desirable by the board, in accordance with the
40-5 board's Veterans' Housing Assistance Program.
40-6 Sec. 164.004. RULES. The board shall adopt rules providing
40-7 for the administration of its financial assistance programs
40-8 established pursuant to this chapter, including rules concerning
40-9 the purchasing of land and making the sale thereof to veterans, the
40-10 making of home mortgage loans to veterans, the use of insurance on
40-11 such land and homes as deemed appropriate by the board, as further
40-12 security for land sold or home mortgage loans made, the criteria
40-13 for approving lending institutions participating in such programs,
40-14 the terms and conditions of any contract made with any such lending
40-15 institution, and such other matters as the board deems appropriate.
40-16 Sec. 164.005. RIGHTS AND POWERS OF BOARD. In connection
40-17 with the administration of its financial assistance programs under
40-18 this chapter, the board shall have and may exercise, to the extent
40-19 not inconsistent with this chapter, all the rights and powers
40-20 granted to it by chapters 161 and 162 of this code relating to the
40-21 administration of the board's Veterans' Land Program and Veterans'
40-22 Housing Assistance Program.
40-23 Sec. 164.006. ISSUANCE OF BONDS. For the issuance of bonds
40-24 under this chapter, the board may exercise the authority granted to
40-25 the governing body of an issuer with regard to issuance of
41-1 obligations under Chapter 656, Acts of the 68th Legislature,
41-2 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
41-3 Statutes), to the extent that it is not inconsistent with this
41-4 chapter.
41-5 Sec. 164.007. CONDITIONS FOR ISSUANCE OF BONDS. (a) Bonds
41-6 may be issued in various series and issues.
41-7 (b) Bonds shall be payable as provided by the board and may
41-8 mature serially or otherwise.
41-9 (c) Bonds shall be redeemable before maturity or subject to
41-10 tender for purchase at the price or prices and under the terms and
41-11 conditions fixed by the board in the resolution providing for the
41-12 issuance and sale of the bonds.
41-13 (d) Bonds may bear the rate or rates of interest (fixed,
41-14 variable, floating or otherwise), or may bear no interest, as
41-15 determined by the board.
41-16 (e) Bonds may be sold (at public or private sale) at a price
41-17 or prices and on terms determined by the board.
41-18 Sec. 164.008. FORM OF BONDS. (a) The bonds may be issued
41-19 in the form, denominations, and manner and under the terms,
41-20 conditions, and details as provided by the board in the resolution
41-21 authorizing their existence.
41-22 (b) The bonds shall be signed and executed as provided by
41-23 the board's resolution or order authorizing the issuance of the
41-24 bonds.
41-25 Sec. 164.009. SECURITY FOR THE BONDS. The bonds issued
42-1 under this chapter shall be special obligations of the board. As
42-2 security for the payment of the bonds, the board may provide for a
42-3 pledge of and lien on (i) the receipts of all kinds of the
42-4 veterans' land fund and the veterans' housing assistance fund
42-5 determined by the board (on the basis of facts, circumstances and
42-6 expectations at the time of issuance of such bonds) not to be
42-7 required to pay the principal of or interest on the general
42-8 obligation bonds issued pursuant to Article III, Sections 49-b and
42-9 49-b-1 of the Texas Constitution (or to make payments with respect
42-10 to principal or interest under any bond enhancement agreement with
42-11 respect to such general obligation bonds), (ii) the assets of the
42-12 veterans' land fund or the veterans' housing assistance fund
42-13 determined by the board (on the basis of facts, circumstances and
42-14 expectations at the time of issuance of such bonds) not to be
42-15 required for the purposes thereof, (iii) the repayments received by
42-16 the board from financial assistance provided under this chapter,
42-17 (iv) other program revenues, and (v) other lawfully available
42-18 revenues of the board, such pledge and lien to be provided for, and
42-19 determined in accordance with, the resolution of the board
42-20 providing for the issuance and sale of the bonds.
42-21 Sec. 164.010. BOND ENHANCEMENT AGREEMENTS. The board may,
42-22 at any time and from to time, enter into one or more bond
42-23 enhancement agreements which the board deems to be necessary or
42-24 appropriate to place the obligation of the board, as represented by
42-25 the bonds, in whole or in part, on the interest rate, currency,
43-1 cash flow, or other basis desired by the board, including, without
43-2 limitation, bond enhancement agreements commonly known as interest
43-3 rate swap agreements, currency swap agreements, forward payment
43-4 conversion agreements, or agreements providing for payments based
43-5 on levels of or changes in interest rates or currency exchange
43-6 rates, or agreements to exchange cash flows or a series of
43-7 payments, or agreements including, without limitation, options,
43-8 puts or calls to hedge payment, currency, rate, spread, or other
43-9 exposure, all upon such terms and conditions as may be approved by
43-10 the board. A bond enhancement agreement is an agreement for
43-11 professional services and shall contain the terms and conditions
43-12 and be for the period that the board approves. The cost to the
43-13 board of the bond enhancement agreement may be paid from the
43-14 proceeds of the sale of the bonds to which the bond enhancement
43-15 agreement relates or from any other source, including the revenues
43-16 of the board that are available for the purpose of paying the bonds
43-17 or that may otherwise be legally available to make those payments.
43-18 Sec. 164.011. FUNDS. (a) In the resolution authorizing the
43-19 issuance of bonds, the board may make additional covenants with
43-20 respect to the bonds and the pledged revenues and may provide for
43-21 the flow of funds and the establishment, maintenance, and
43-22 investment of funds.
43-23 (b) The funds established may include an interest and
43-24 sinking fund, a reserve fund, and other funds that will be kept and
43-25 maintained by or under the direction of the board.
44-1 (c) Any funds established by the board pursuant to this
44-2 chapter are not to be part of the state treasury but, at the
44-3 direction of the board, may be kept and held in escrow and in trust
44-4 by the state treasury on behalf of the board and the owners of the
44-5 bonds and used only as provided by this chapter.
44-6 (d) Money in the funds shall be invested in authorized
44-7 investments as provided by any bond resolutions and orders of the
44-8 board.
44-9 (e) Legal title to money in any fund is in the board unless
44-10 or until paid from the fund as provided by this chapter or the
44-11 resolutions authorizing the issuance of the bonds.
44-12 (f) The state treasurer, as custodian of any of the funds,
44-13 shall administer the funds solely and strictly as provided by this
44-14 chapter and the resolutions authorizing the issuance of the bonds,
44-15 and the state may not take any other action relating to any of
44-16 those funds except those specified in this chapter and the
44-17 resolutions authorizing the issuance of the bonds.
44-18 Sec. 164.012. RESOLUTIONS, ORDERS, ETC. (a) The
44-19 resolutions authorizing the issuance of the bonds may prohibit the
44-20 further issuance of bonds or other obligations payable from the
44-21 pledged revenues or may reserve the right to issue additional bonds
44-22 to be secured by a pledge of and payable from the revenue on a
44-23 parity with or subordinate to the lien and pledge in support of the
44-24 bonds being issued.
44-25 (b) The resolutions of the board authorizing the issuance of
45-1 the bonds may include other provisions and covenants that the board
45-2 determines necessary.
45-3 (c) In a resolution authorizing the issuance of the bonds,
45-4 the board may prescribe systems, methods, routines, and procedures
45-5 under which the board will function.
45-6 (d) The board may adopt and have executed any other
45-7 proceedings or instruments necessary and convenient in the issuance
45-8 of bonds.
45-9 Sec. 164.013. INVESTMENT SECURITIES. The bonds and any
45-10 interest coupons are investment securities under Chapter 8,
45-11 Business & Commerce Code, and may be issued registrable as to
45-12 principal or as to both principal and interest or may be made
45-13 redeemable before maturity at the option of the authority or may
45-14 contain a mandatory redemption provision.
45-15 Sec. 164.014. APPROVAL OF THE ATTORNEY GENERAL. The bonds
45-16 issued under this chapter are subject to review and approval by the
45-17 attorney general in the same manner and with the same effect as
45-18 provided by Chapter 656, Acts of the 68th Legislature, Regular
45-19 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes).
45-20 Sec. 164.015. REFUNDING BONDS. (a) The board may issue
45-21 refunding bonds to refund all or part of its outstanding bonds
45-22 issued under this chapter, including matured but unpaid interest.
45-23 (b) The board may refund bonds in the manner provided by
45-24 general law for revenue bonds.
45-25 Sec. 164.016. BONDS AS INVESTMENTS AND SECURITY. (a) The
46-1 bonds are legal and authorized investments for banks, savings
46-2 banks, trust companies, savings and loan companies, insurance
46-3 companies, fiduciaries, trustees, guardians, and the sinking funds
46-4 of cities, towns, villages, counties, school districts, and other
46-5 political subdivisions of the state and other public funds of the
46-6 state and its agencies.
46-7 (b) The bonds are eligible to secure deposits of public
46-8 funds of the state and cities, counties, school districts, and
46-9 other political subdivisions of the state. The bonds are lawful
46-10 and sufficient security for deposits to the extent of their par
46-11 value.
46-12 Sec. 164.017. TAX EXEMPT. Since the board is performing an
46-13 essential governmental function in the exercise of the powers
46-14 conferred on it by this chapter, the bonds issued under this
46-15 chapter, and the interest and income from the bonds, including any
46-16 profit made on the sale of bonds, and all fees, charges, gifts,
46-17 grants, revenues, receipts, and other money received or pledged to
46-18 pay or secure the payment of bonds are free from taxation and
46-19 assessments of every kind by this state and any city, county,
46-20 district, authority, or other political subdivision of this state.
46-21 Sec. 164.018. NO PLEDGE OF STATE FAITH AND CREDIT; COVENANT
46-22 WITH OWNERS OF BONDS. (a) The bonds issued under this chapter are
46-23 special obligations of the board and are payable only from and
46-24 secured only by the revenues and assets pledged to secure payment
46-25 of such bonds pursuant to the Texas Constitution and this chapter
47-1 and such bonds are not and do not create or constitute a pledge,
47-2 giving, or lending of the faith or credit or taxing authority of
47-3 the state.
47-4 (b) Each bond must include a statement that the faith or
47-5 credit and the taxing authority of the state is not pledged, given,
47-6 or loaned to secure payment of the principal of, premium or
47-7 interest on the bonds.
47-8 (c) The state pledges to and agrees with the owners of any
47-9 bonds issued in accordance with this chapter that the state will
47-10 not limit or alter the rights vested in the board to fulfill the
47-11 terms of any agreements made with the owners of the bonds or, in
47-12 any way, impair the rights and remedies of those owners until the
47-13 bonds, together with any premium and interest, interest on any
47-14 unpaid premium or installments of interest, and all costs and
47-15 expenses in connection with any action or proceeding by or on
47-16 behalf of those owners, are fully met and discharged. The board
47-17 may include this pledge and agreement of the state in any agreement
47-18 with the owners of bonds.
47-19 Sec. 164.019. ENFORCEMENT BY MANDAMUS. A writ of mandamus
47-20 and all other legal and equitable remedies are available to any
47-21 party in interest to require the board and any other party to carry
47-22 out agreements and to perform functions and duties under this
47-23 chapter, the Texas Constitution, or the board's bond resolutions
47-24 and orders.
47-25 SECTION 3.02. Upon the adoption by the voters of the
48-1 constitutional amendment proposed by ___J.R. No.____ 73rd
48-2 Legislature, Regular Session 1993, Section 164.009, Natural
48-3 Resources Code, as added by SECTION 3.01 of this Act is amended to
48-4 read as follows:
48-5 Sec. 164.009. SECURITY FOR THE BONDS. The bonds issued
48-6 under this chapter shall be special obligations of the board. As
48-7 security for the payment of the bonds, the board may provide for a
48-8 pledge of and lien on (i) the receipts of all kinds of the
48-9 veterans' land fund, the veterans' housing assistance fund and the
48-10 veterans' housing assistance fund II determined by the board (on
48-11 the basis of facts, circumstances and expectations at the time of
48-12 issuance of such bonds) not to be required to pay the principal of
48-13 or interest on the general obligation bonds issued pursuant to
48-14 Article III, Sections 49-b, 49-b-1 and 49-b-2 of the Texas
48-15 Constitution (or to make payments with respect to principal or
48-16 interest under any bond enhancement agreement with respect to such
48-17 general obligation bonds), (ii) the assets of the veterans' land
48-18 fund, the veterans' housing assistance fund or the veterans'
48-19 housing assistance fund II determined by the board (on the basis of
48-20 facts, circumstances and expectations at the time of issuance of
48-21 such bonds) not to be required for the purposes thereof, (iii) the
48-22 repayments received by the board from financial assistance provided
48-23 under this chapter, (iv) other program revenues, and (v) other
48-24 lawfully available revenues of the board, such pledge and lien to
48-25 be provided for, and determined in accordance with, the resolution
49-1 of the board providing for the issuance and sale of the bonds.
49-2 ARTICLE 4
49-3 SECTION 4.01. The State Purchasing and General Services Act,
49-4 Art. 601b V.T.C.S., is amended by adding Section 3.052, to read as
49-5 follows:
49-6 Sec. 3.052. PURCHASES BY THE VETERANS' LAND BOARD. (a)
49-7 This Act, including without limitation Articles 5 and 9 of this
49-8 Act, does not apply to purchases of supplies, materials, services,
49-9 or equipment for use by the Veterans' Land Board in connection with
49-10 improvements or repairs to, or maintenance of, land, or other
49-11 activities undertaken by the Veterans' Land Board with respect to
49-12 land under the provisions of Section 161.175, Natural Resources
49-13 Code.
49-14 ARTICLE 5
49-15 SECTION 5.01. SEVERABILITY. If any provision of this Act or
49-16 its application to any person or circumstance is held invalid, the
49-17 invalidity does not affect other provisions or applications of this
49-18 Act that can be given effect without the invalid provision or
49-19 application, and to this end the provisions of this Act are
49-20 declared to be severable.
49-21 SECTION 5.02. EMERGENCY. The importance of this legislation
49-22 and the crowded condition of the calendars in both houses create an
49-23 emergency and an imperative public necessity that the
49-24 constitutional rule requiring bills to be read on three several
49-25 days in each house be suspended, and this rule is hereby suspended
50-1 and that this Act take effect and be in force from and after its
50-2 passage, except SECTIONS 1.25, 2.03, 2.06, 2.10 and 3.02, which
50-3 shall take effect on the adoption by the voters of the
50-4 constitutional amendment proposed by ___J.R. No.____, 73rd
50-5 Legislature, Regular Session, 1993 and it is intended that on the
50-6 adoption of such constitutional amendment SECTION 2.03 shall
50-7 supersede and replace SECTION 2.02 of this Act and that SECTION
50-8 2.02 shall have no further effect. If that amendment is not
50-9 approved, SECTIONS 1.25, 2.03, 2.06, 2.10 and 3.02 of this Act have
50-10 no effect. It is so enacted.