By: West S.J.R. No. 50
 
 
  SENATE JOINT RESOLUTION
 
 
 
  proposing a constitutional amendment providing for the issuance of
  general obligation bonds of the state to finance educational loans
  to students.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.   Article III, Texas Constitution, is amended by
  adding Section 50b-7 to read as follows:
         Sec. 50b-7.  (a)  The legislature by general law may
  authorize the Texas Higher Education Coordinating Board or its
  successor or successors to issue and sell general obligation bonds
  of the State of Texas for the purpose of financing educational loans
  to students in the manner provided by law.  The principal amount of
  outstanding bonds issued under this section must at all times be
  equal to or less than the aggregate principal amount of state
  general obligation bonds previously authorized for that purpose by
  any other provision or former provision of this constitution.
         (b)  The bonds shall be executed in the form, on the terms,
  and in the denominations, bear interest, and be issued in
  installments as prescribed by the Texas Higher Education
  Coordinating Board or its successor or successors.
         (c)  The maximum net effective interest rate to be borne by
  bonds issued under this section may not exceed the maximum rate
  provided by law.
         (d)  The legislature may provide for the investment of bond
  proceeds and may establish and provide for the investment of an
  interest and sinking fund to pay the bonds. Income from the
  investment shall be used for the purposes prescribed by the
  legislature.
         (e)  While any of the bonds issued under this section or
  interest on the bonds is outstanding and unpaid, there is
  appropriated out of the first money coming into the treasury in each
  fiscal year, not otherwise appropriated by this constitution, the
  amount sufficient to pay the principal of and interest on the bonds
  that mature or become due during the fiscal year, less any amount in
  an interest and sinking fund established under this section at the
  end of the preceding fiscal year that is pledged to the payment of
  the bonds or interest.
         (f)  Bonds issued under this section, after approval by the
  attorney general, registration by the comptroller of public
  accounts, and delivery to the purchasers, are incontestable.
         SECTION 2.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 8, 2011.
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment providing for the
  issuance of general obligation bonds of the State of Texas to
  finance educational loans to students."