Bill Text: TX SB573 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to the issuance of certain capital appreciation bonds by political subdivisions.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2015-05-20 - Committee report printed and distributed [SB573 Detail]
Download: Texas-2015-SB573-Comm_Sub.html
| By: Campbell | S.B. No. 573 | |
| (In the Senate - Filed February 13, 2015; February 23, 2015, | ||
| read first time and referred to Committee on Intergovernmental | ||
| Relations; May 20, 2015, reported favorably by the following vote: | ||
| Yeas 4, Nays 3; May 20, 2015, sent to printer.) | ||
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| relating to the issuance of certain capital appreciation bonds by | ||
| political subdivisions. | ||
| 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. ISSUANCE OF CAPITAL APPRECIATION BONDS BY | ||
| LOCAL GOVERNMENTS. (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) The total amount of capital appreciation bonds issued by | ||
| a county, municipality, special district, school district, junior | ||
| college district, or other political subdivision that are secured | ||
| by ad valorem taxes may not exceed 25 percent of the political | ||
| subdivision's total outstanding bonded indebtedness at the time of | ||
| the issuance, including the amount of principal and interest to be | ||
| paid on the outstanding bonds until maturity. | ||
| (c) Subsection (b) does not apply to the issuance of: | ||
| (1) refunding bonds under Chapter 1207; or | ||
| (2) capital appreciation bonds for 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, 2015. | ||
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