Amend SB 1640 (house committee printing) by adding the 
following appropriately numbered SECTION to the bill and 
renumbering the subsequent SECTIONS of the bill accordingly:
	SECTION ____.  (a)  Section 52.17, Education Code, is 
amended by amending Subsections (a), (c), and (d) and adding 
Subsection (a-1) to read as follows:
	(a)  Each fiscal year a sufficient portion of the funds 
received by the board as repayment of student loans granted under 
this chapter, as interest on the loans, and as other available funds 
relating to the student loan program shall be deposited in the state 
treasury in the Texas college interest and sinking fund or a board 
interest and sinking fund to:
		(1)  pay the interest and principal coming due during 
the next [ensuing] fiscal year on [and to establish and maintain a 
reserve in the interest and sinking fund equal to the average annual 
principal and interest requirements of] all outstanding bonds 
issued under this chapter that are secured by money [funds] in, as 
applicable, the Texas college interest and sinking fund or a board 
interest and sinking fund; and
		(2)  establish and maintain any reserves required by 
the board resolution authorizing the issuance of the bonds.
	(a-1)  With respect to any bonds that remain outstanding 
under this chapter, the board may, subject to the terms of the 
applicable board resolution authorizing the issuance of those 
bonds:
		(1)  reduce, eliminate, or replace any reserve portion 
of the Texas college interest and sinking fund or a board interest 
and sinking fund; and
		(2)  apply any excess money in accordance with 
Subsection (b).       
	(c)  If [In the event that] funds received by the board in any 
fiscal year as repayment of student loans and as interest on the 
loans are insufficient to pay the interest coming due and the 
principal maturing on the bonds during the next [ensuing] fiscal 
year as described by Subsection (a), the comptroller shall transfer 
into the Texas college interest and sinking fund and each board 
interest and sinking fund out of the first money coming into the 
treasury that[, which] is not otherwise appropriated by the 
constitution[,] an additional amount sufficient to pay that [the] 
interest [coming due] and [the] principal [maturing on the bonds 
during the ensuing fiscal year].
	(d)  The resolution authorizing the issuance of the bonds may 
provide for the deposit, from bond proceeds, of not more than 36
[24] months' interest, and may provide for the use of bond proceeds 
as a reserve for the payment of principal of and interest on the 
bonds.
	(b)  Section 52.19, Education Code, is amended to read as 
follows:           
	Sec. 52.19.  INVESTMENT OF FUNDS.  All money in the Texas 
college interest and sinking fund and in each board interest and 
sinking fund, including any [the] reserve portion, and all money in 
the Texas Opportunity Plan Fund and in the student loan auxiliary 
fund in excess of the amount necessary for student loans, and all 
money in each board student loan fund shall be invested by the 
comptroller in the investments prescribed by board resolution.  The 
board shall furnish to the comptroller a copy of the resolution 
prescribing authorized investments.  The board may sell any 
instruments owned in the Texas college interest and sinking fund, a 
board interest and sinking fund, the Texas Opportunity Plan Fund, 
the student loan auxiliary fund, or a board student loan fund at the 
prevailing market price.  Income from these investments may be 
deposited in any of those funds.
	(c)  Section 52.541(c), Education Code, is amended to read as 
follows:       
	(c)  The board may transfer funds between the Texas 
Opportunity Plan Fund and the student loan auxiliary fund and among 
the separate accounts established under this section within those 
funds if:
		(1)  the transfer is approved by the board and is 
necessary to administer the Texas Opportunity Plan Fund or the 
student loan auxiliary fund; and
		(2)  the reason for the transfer is documented in the 
accounting of the funds.
	(d)  Section 52.82(c), Education Code, is amended to read as 
follows:        
	(c)  The board may sell the bonds at a negotiated sale if the 
board determines that a negotiated sale is a more efficient and 
economical method of selling the bonds.  If the board has determined 
that the bonds will be sold by competitive bid, the board by 
resolution shall prescribe the manner of giving notice of the sale.
	(e)  The following statutes are repealed:                                      
		(1)  Sections 52.14 and 52.15, Education Code; and                            
		(2)  Section 52.32(d), Education Code.                                        
	(f)  Notwithstanding any other provision of this Act, this 
section takes effect September 1, 2007.