Bill Text: TX SB449 | 2013-2014 | 83rd Legislature | Engrossed
Bill Title: Relating to the issuance of certain capital appreciation bonds by political subdivisions.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2013-05-17 - Committee report sent to Calendars [SB449 Detail]
Download: Texas-2013-SB449-Engrossed.html
| By: Hinojosa | S.B. No. 449 | |
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| relating to a prohibition on the issuance of certain capital | ||
| appreciation bonds by local governments. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 1201, Government Code, is | ||
| amended by adding Section 1201.0245 to read as follows: | ||
| Sec. 1201.0245. CAPITAL APPRECIATION BONDS BY LOCAL | ||
| GOVERNMENTS PROHIBITED. (a) In this section, "capital | ||
| appreciation bond" means a bond that accrues and compounds interest | ||
| from its date of delivery, the interest on which by its terms is | ||
| payable only upon maturity or prior redemption. | ||
| (b) A county, municipality, special district, school | ||
| district, junior college district, or other political subdivision | ||
| of the state may not issue capital appreciation bonds that are | ||
| secured by ad valorem taxes. | ||
| (c) Subsection (b) does not apply to the issuance of | ||
| refunding bonds under Chapter 1207, Government Code. | ||
| (d) Subsection (b) does not apply to the issuance of capital | ||
| appreciation bonds for the purpose of financing transportation | ||
| projects. | ||
| SECTION 2. The change in law made by this Act does not | ||
| affect the validity of capital appreciation bonds issued before the | ||
| effective date of this Act. | ||
| SECTION 3. This Act takes effect September 1, 2013. | ||
