TX NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE A. ADMINISTRATION

CHAPTER 161. VETERANS LAND BOARD

SUBCHAPTER D. GENERAL OBLIGATION BONDS



§ 161.111. ISSUANCE AND SALE OF BONDS;
     DISPOSITION OF PROCEEDS. By appropriate action, the board may provide by resolution for the issuance and sale of negotiable bonds authorized by the constitution, and the proceeds shall be a part of the fund.

Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.112. INSTALLMENTS.
     The board, at its option, may issue bonds in one or several installments.

Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.113. INTEREST RATE.
     The bonds shall bear the rate or rates of interest prescribed by the board.

Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.05, eff. Aug. 30, 1993.

§ 161.114. PAYMENT AND MATURITY OF BONDS.
     (a) The bonds shall be payable as provided by the board and shall mature serially or otherwise not later than 40 years from their date.
     (b) Bonds previously issued shall mature according to their provisions.
     (c) The board shall determine the medium of payment for both principal of and interest on the bonds.
     (d) The board at its own option may make the bonds redeemable or subject to tender for purchase before maturity at the price and under the terms and conditions fixed by the board in the resolution providing for the issuance and sale of the bonds.

Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.06, eff. Aug. 30, 1993.

§ 161.115. FORM, DENOMINATION, AND PLACE OF PAYMENT OF BONDS.
     The board shall determine the form of the bonds, including
      the forms of interest coupons attached to the bonds, and shall fix the denomination or denominations of the bonds and the place or places for payment of the principal of and interest on the bonds.

Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.116. MANNER OF EXECUTION.
     (a) The bonds shall be executed by and on behalf of the board and the state as obligations of the state in the manner provided in Subsection (b) of this section.
     (b) The bonds shall be signed and executed as the board provides in the resolution or order authorizing the issuance of the bonds.

Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.07, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 300, § 36, eff. Aug. 30, 1993; Acts 2001, 77th Leg., ch. 620, § 1, eff. Sept. 1, 2001.

§ 161.117. SIGNATURES AND SEALS.
     (a) The resolution authorizing the issuance of an installment or series of bonds may prescribe the extent to which facsimile signatures and facsimile seals may be used in lieu of manual signatures and manually impressed seals in executing the bonds and attached coupons.
     (b) Interest coupons may be signed with the facsimile signatures of the chairman and secretary of the board.
     (c) If an officer whose manual or facsimile signature appears on a bond, or whose facsimile signature appears on a coupon, ceases to be an officer before the bonds are delivered, the signature shall still be valid and sufficient for all purposes the same as if the officer had remained in office until the delivery of the bonds.

Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.118. APPROVAL BY ATTORNEY GENERAL.
     Before bonds are delivered to the purchasers, the record relating to the bonds shall be examined by the attorney general. If the record demonstrates that the bonds have been issued in accordance with the constitution and this subchapter, the bonds shall be approved by the attorney general.

Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.08, eff. Aug. 30, 1993.

§ 161.119. REGISTRATION WITH COMPTROLLER.
     After the bonds are approved by the attorney general, they shall be registered in the office of the comptroller.

Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.09, eff. Aug. 30, 1993.

§ 161.120. VALIDITY OF BONDS.
     (a) After the bonds are approved by the attorney general and registered with the state comptroller, they shall be held as valid and binding obligations of the state in every action, suit, or proceeding in which their validity is or may be brought into question.
     (b) In each action brought to enforce collection of the bonds or rights incident to the bonds, the certificate of approval by the attorney general or a certified copy of that certificate shall be admitted and received in evidence as to the validity of the bonds.
     (c) The only defense that can be offered against the validity of the bonds shall be forgery or fraud.

Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.121. BONDS AS NEGOTIABLE INSTRUMENTS.
     Bonds issued under this chapter have and are declared to have all qualities and incidents of negotiable instruments under the laws of this state.

Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.123. NOTICE FOR BIDS ON BONDS.
     If the board authorizes the issuance of a series of bonds and decides to call for bids, it shall publish an appropriate notice at least one time not less than 10 days before the date of the sale in a recognized financial journal of general circulation.

Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.10, eff. Aug. 30, 1993.

§ 161.124. SECURITY FOR BID.
     The board may require bidders to accompany their bids with exchange or bank cashier's checks in an amount considered adequate by the board to be a forfeit guaranteeing the acceptance and payment for bonds covered by the bids and accepted by the board.

Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.11, eff. Aug. 30, 1993.

§ 161.125. SALE OF BONDS.
     Bonds may be sold at public or private sale at a price or prices and on terms determined by the board.

Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.12, eff. Aug. 30, 1993.

§ 161.126. REPLACEMENT BONDS.
     The board may provide for replacement of bonds that are mutilated, lost, or destroyed.

Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.127. REFUNDING BONDS.
     (a) The board may provide by resolution for issuance of refunding bonds for the purpose of refunding outstanding bonds issued under this chapter together with accrued interest on the bonds.
     (b) As far as applicable, the preceding provisions of this subchapter shall govern:
          (1) the issuance of the refunding bonds;
          (2) the maturities and other details of the refunding bonds;
          (3) the rights of bondholders; and
          (4) the duties of the board with respect to the refunding bonds.

Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, § 1, eff. Sept. 1, 1977.

§ 161.128. BONDS AS INVESTMENTS AND SECURITY.
     (a) Bonds issued under this chapter are legal and authorized investments for banks, savings banks, trust companies, building and loan associations, insurance companies, fiduciaries, trustees, guardians, and for the sinking funds of cities, towns, villages, counties, school districts, and other political subdivisions and public agencies of the state.
     (b) The bonds are legal and sufficient security for the deposits in the amount of the par value of the bonds.

Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.13, eff. Aug. 30, 1993.

§ 161.129. TAXATION OF BONDS.
     Bonds are exempt from any tax by the state and by cities, towns, villages, counties, school districts, and other political subdivisions and public agencies of the state.

Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, § 1, eff. Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.14, eff. Aug. 30, 1993.

§ 161.130. CONSTITUTIONAL APPROPRIATIONS.
     (a) If during the existence of the fund or during the time general obligation bonds are payable from the fund the board determines that there will not be sufficient money in the fund during the following biennium available to pay principal of or interest on the bonds that are to come due and to be paid from the fund during that biennium, the comptroller shall transfer to the fund the first money coming into the State Treasury not otherwise appropriated by the constitution in amounts sufficient to pay the obligations.
     (b) The money appropriated shall be used to pay the obligations only if at the time the principal or interest actually become due there is not sufficient money in the fund available to pay the amount due.

Added by Acts 1993, 73rd Leg., ch. 242, § 1.15, eff. Aug. 30, 1993.

§ 161.131. MINORITY-OWNED BUSINESSES.
     (a) The board shall make a good faith effort to award to minority-owned businesses:
          (1) contracts relating to the issuance of bonds by the board under this chapter in the amount of at least 20 percent of the total costs of issuing those bonds; and
          (2) contracts for the items to be financed by bonds issued by the board in the amount of at least 20 percent of the proceeds of those bonds.
     (b) Not later than October 31 of each year, the board shall file with the governor and each house of the legislature a written report containing the following information for the previous year for all businesses and for minority-owned businesses classified by minority group:
          (1) the total number of contracts relating to the issuance of bonds by the board under this chapter and to the items to be financed by those bonds;
          (2) the total dollar amount the board must pay under each contract described by Subdivision (1) of this subsection; and
          (3) the total number of businesses submitting bids or proposals relating to the issuance of bonds by the board under this chapter and to the items to be financed by those bonds.
     (c) In this section:
          (1) "Minority-owned business" means a business entity at least 51 percent of which is owned by members of a minority group or, in the case of a corporation, at least 51 percent of the shares of which are owned by members of a minority group, and that is managed and controlled by members of a minority group in its daily operations.
          (2) "Minority group" includes:
               (A) African Americans;
               (B) American Indians;
               (C) Asian Americans; and
               (D) Mexican Americans and other Americans of Hispanic origin.

Added by Acts 1993, 73rd Leg., ch. 242, § 1.15, eff. Aug. 30, 1993.

§ 161.132. WOMEN-OWNED BUSINESSES.
     (a) The board shall make a good faith effort to award to women-owned businesses:
          (1) contracts relating to the issuance of bonds by the board under this chapter in the amount of at least 10 percent of the total costs of issuing those bonds; and
          (2) contracts for the items to be financed by bonds issued by the board in the amount of at least 10 percent of the proceeds of those bonds.
     (b) Not later than October 31 of each year, the board shall file with the governor and each house of the legislature a written report containing the following information for the previous year for all businesses and for women-owned businesses classified by minority group:
          (1) the total number of contracts relating to the issuance of bonds by the board under this chapter and to the items to be financed by those bonds;
          (2) the total dollar amount the board must pay under each contract described by Subdivision (1) of this subsection; and
          (3) the total number of businesses submitting bids or proposals relating to the issuance of bonds by the board under this chapter and to the items to be financed by those bonds.
     (c) In this section:
          (1) "Women-owned business" means a business entity at least 51 percent of which is owned by women or, in the case of a corporation, at least 51 percent of the shares of which are owned by women, and that is managed and controlled by women in its daily operations.
          (2) "Minority group" includes:
               (A) African Americans;
               (B) American Indians;
               (C) Asian Americans; and
               (D) Mexican Americans and other Americans of Hispanic origin.

Added by Acts 1993, 73rd Leg., ch. 242, § 1.15, eff. Aug. 30, 1993.