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proposing a constitutional amendment providing for the issuance of |
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general obligation bonds of the state to finance educational loans |
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to students. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article III, Texas Constitution, is amended by |
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adding Section 50b-7 to read as follows: |
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Sec. 50b-7. (a) The legislature by general law may |
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authorize the Texas Higher Education Coordinating Board or its |
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successor or successors to issue and sell general obligation bonds |
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of the State of Texas for the purpose of financing educational loans |
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to students in the manner provided by law. The principal amount of |
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outstanding bonds issued under this section must at all times be |
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equal to or less than the aggregate principal amount of state |
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general obligation bonds previously authorized for that purpose by |
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any other provision or former provision of this constitution. |
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(b) The bonds shall be executed in the form, on the terms, |
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and in the denominations, bear interest, and be issued in |
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installments as prescribed by the Texas Higher Education |
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Coordinating Board or its successor or successors. |
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(c) The maximum net effective interest rate to be borne by |
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bonds issued under this section may not exceed the maximum rate |
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provided by law. |
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(d) The legislature may provide for the investment of bond |
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proceeds and may establish and provide for the investment of an |
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interest and sinking fund to pay the bonds. Income from the |
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investment shall be used for the purposes prescribed by the |
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legislature. |
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(e) While any of the bonds issued under this section or |
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interest on the bonds is outstanding and unpaid, there is |
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appropriated out of the first money coming into the treasury in each |
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fiscal year, not otherwise appropriated by this constitution, the |
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amount sufficient to pay the principal of and interest on the bonds |
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that mature or become due during the fiscal year, less any amount in |
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an interest and sinking fund established under this section at the |
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end of the preceding fiscal year that is pledged to the payment of |
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the bonds or interest. |
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(f) Bonds issued under this section, after approval by the |
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attorney general, registration by the comptroller of public |
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accounts, and delivery to the purchasers, are incontestable. |
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SECTION 2. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 8, 2011. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment providing for the |
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issuance of general obligation bonds of the State of Texas to |
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finance educational loans to students." |