TX NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE A. ADMINISTRATION

CHAPTER 162. VETERANS' HOUSING ASSISTANCE PROGRAM

SUBCHAPTER A. GENERAL PROVISIONS



§ 162.001. DEFINITIONS.
     (a) In this chapter:
          (1) "Board" means the Veterans' Land Board.
          (2) "Fund" means the veterans' housing assistance fund.
          (3) "Home" means a dwelling within this state in which a veteran intends to reside as the veteran's principal residence.
          (4) "Lending institution" means a bank, trust company, savings bank, national banking association, savings and loan association, building and loan association, mortgage banker, mortgage company, credit union, life insurance company, or other financial institution that customarily provides service or aids in the financing of mortgages on single-family residential housing which has been approved for participation in the program by the board. The term includes a holding company for any of the foregoing.
          (5) "Loan" means a veterans' housing assistance loan made or acquired by the board under this chapter secured by a mortgage on a veteran's home.
          (6) "Program" means the Veterans' Housing Assistance Program.
          (7) "Commission" means the Texas Veterans Commission.
          (8) "Veteran" has the meaning assigned by Section 161.001.
          (9) "Veterans' housing assistance fund" means the Veterans' Housing Assistance Fund established under Article III, Section 49-b-1, of the Texas Constitution or the Veterans' Housing Assistance Fund II established under Article III, Section 49-b-2, of the Texas Constitution. Each fund shall be separate and distinct from the other fund and the provisions of this chapter dealing with the fund shall relate to each fund separately and to the separate assets, liabilities, and administration of each fund.
     (b) Repealed by Acts 2003, 78th Leg., ch. 1145, § 5.
     (c) Repealed by Acts 2003, 78th Leg., ch. 1145, § 5.

Added by Acts 1983, 68th Leg., p. 547, ch. 115, § 1. Amended by

Acts 1985, 69th Leg., ch. 266, § 1, eff. Sept. 1, 1985; Acts 1985, 69th Leg., ch. 798, § 15; Acts 1991, 72nd Leg., ch. 239, § 1, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 242, § 2.01 to 2.03, eff. Aug. 30, 1993; Acts 2001, 77th Leg., ch. 83, § 2, eff. May 11, 2001; Acts 2003, 78th Leg., ch. 1145, § 3, 5, eff. June 20, 2003.

§ 162.002. MONEY AND INTERESTS INCLUDED IN THE VETERANS' HOUSING ASSISTANCE FUND.
     (a) The veterans' housing assistance
      fund shall include:
          (1) any interest of the board in home mortgage loans made from money in the fund to veterans pursuant to this chapter including any insurance thereon or on the homes;
          (2) the proceeds derived from the sale or other disposition of the board's interest in home mortgage loans;
          (3) the money attributable to any bonds issued and sold by the board to provide money for the fund which shall include but shall not be limited to the proceeds from the issuance and sale of such bonds;
          (4) income, rents, and any other pecuniary benefit received by the board as a result of making these loans;
          (5) sums received by way of indemnity or forfeiture for the failure of any bidder for the purchase of any such bonds to comply with the person's bid and accept and pay for such bonds and amounts received by the board under bond enhancement agreements with respect to the bonds;
          (6) interest received from investments of any such money; and
          (7) any equitable interest in properties encumbered under this program and attributable to the fund.
     (b) Except as otherwise provided by law, money in the fund shall be deposited in the State Treasury to the credit of the fund.

Added by Acts 1983, 68th Leg., p. 547, ch. 115, § 1. Amended by

Acts 1993, 73rd Leg., ch. 242, § 2.04, eff. Aug. 30, 1993; Acts 1997, 75th Leg., ch. 71, § 3, eff. May 9, 1997.

§ 162.003. ADMINISTRATION.
     (a) The board shall administer the veterans' housing assistance fund and the Veterans' Housing Assistance Program in accordance with this chapter.
          (1) The board may contract with other agencies of the state or with private entities to administer all or part of the program.
          (2) To the extent that it is cost effective, the board may contract with the commission to determine whether or not applicants qualify as veterans under the terms of this chapter.
          (3) The board may set and collect fees it considers reasonable and necessary from each applicant to cover the expenses of administering the program, and these fees shall be deposited in the State Treasury and credited to a special housing program fee fund.
     (b) The board shall adopt rules governing the administration of the fund and program, the making or acquiring of veterans' housing assistance loans, the criteria for approving lending institutions, the use of insurance on the loans and the homes financed under the program, as deemed appropriate by the board, as further security for the loans, the verification of occupancy of the home by the veteran as his principal residence, and the terms and conditions of any contract made with any lending institution for processing, originating, servicing, or administering the loans. In determining the terms of any contracts for the origination or servicing of loans, the board shall review the prudent lending practices prevalent in the residential mortgage lending industry and shall follow such practices to the maximum extent practical.
     (c) The board shall determine the quality and type of homes to be financed under the Veterans' Housing Assistance Program.
     (d) The board shall maintain a list of approved lending institutions and shall review and revise such list as necessary at least annually.
     (e) With respect to loans made under the program, the Veterans' Land Board shall file semiannually with the Bond Review Board a report on the performance of the loans. The Bond Review Board shall review the reports filed by the Veterans' Land Board under this subsection to assess the performance of loans made under the program. The filing dates and the contents of the reports must comply with any rules adopted by the Bond Review Board.

Added by Acts 1983, 68th Leg., p. 547, ch. 115, § 1. Amended by

Acts 1985, 69th Leg., ch. 798, § 16, eff. Sept. 1, 1985; Acts 1991, 72nd Leg., 1st C.S., ch. 4, § 13.03, eff. Aug. 22, 1991;

Acts 2001, 77th Leg., ch. 1420, § 8.356, eff. Sept. 1, 2001.

§ 162.004. INVESTMENTS OF CERTAIN MONEY IN THE VETERANS' HOUSING ASSISTANCE FUND.
     Money in the fund that is not immediately
      committed to the payment of principal and interest on bonds issued by the board to provide money for the fund, the making of home mortgage loans as provided by this chapter, or the payment of expenses as provided by this chapter may be invested in investments authorized for the veterans land fund.

Added by Acts 1989, 71st Leg., ch. 720, § 4, eff. June 14, 1989.

§ 162.0041. CUSTODY AND INVESTMENT OF ASSETS PENDING TRANSACTIONS.
     With the approval of the comptroller, the board, in
      managing the assets of the fund, pending the completion of an investment transaction, may:
          (1) select one or more commercial banks, depository trust companies, or other entities to serve as a custodian of the cash or securities of the fund; and
          (2) authorize the custodian to invest cash held under Subdivision (1) in the investments determined by the board.

Added by Acts 1997, 75th Leg., ch. 71, § 4, eff. May 9, 1997.

§ 162.0042. LENDING SECURITIES.
     (a) In managing the assets of the fund, the board may:
          (1) select one or more commercial banks, depository trust companies, or other entities to serve as a custodian of the securities of the fund; and
          (2) authorize the custodian to lend the securities held under Subdivision (1) as provided by this section and by rules adopted by the board.
     (b) To be eligible to lend securities under this section, a custodian selected by the board under Subsection (a) must be experienced in the operation of a fully secured securities loan program and must:
          (1) maintain adequate capital in the prudent judgment of the board to assure the safety of the securities;
          (2) execute an indemnification agreement satisfactory in form and content to the board fully indemnifying the board against loss resulting from the custodian's operation of a securities loan program for the fund's securities; and
          (3) require any securities broker or dealer to whom it lends securities of the fund to deliver to, and maintain with, the custodian collateral in the form of cash, United States government securities, or letters of credit that are issued by banks rated as to investment quality not less than A or its equivalent by a nationally recognized investment rating firm in an amount equal to at least 100 percent of the market value, from time to time, of the loaned securities.

Added by Acts 1997, 75th Leg., ch. 71, § 4, eff. May 9, 1997. Amended by Acts 1999, 76th Leg., ch. 134, § 4, eff. May 20, 1999.

§ 162.005. SALE OF LOANS.
     (a) Notwithstanding any other provision of this chapter, the board may sell at public or private sale, with or without public bidding, any or all of the loans in the fund. Proceeds from the sale shall be deposited in the fund and otherwise applied in the manner provided by this chapter, except that at the direction of the board the sale proceeds may be used by the board, together with other available money, to discharge, pay, or redeem, in whole or in part, outstanding bonds issued by the board under this chapter.
     (b) In the resolution of the board that authorizes the sale of any or all of the loans in the fund, the board may also authorize one or more designated officers or employees of the board to act on the board's behalf in:
          (1) conducting the sale of the loans; and
          (2) determining:
               (A) the purchaser of the loans; and
               (B) the terms of the purchase agreement.
     (c) A resolution that authorizes an officer or employee of the board to act on the board's behalf as provided by Subsection (b) must establish the maximum principal amount of the loans to be sold and the minimum sales price of the loans to be sold, expressed as a percentage of the principal amount of the loans.

Added by Acts 1993, 73rd Leg., ch. 242, § 2.05, eff. Aug. 30, 1993. Amended by Acts 2001, 77th Leg., ch. 620, § 2, eff. Sept. 1, 2001.

§ 162.006. TEMPORARY TRANSFERS.
     Amounts temporarily transferred from either veterans' housing assistance fund to the veterans' land fund or to the other veterans' housing assistance fund under the Texas Constitution shall be returned to the fund as soon as practicable. Investment earnings allocated by the board to the transferred amounts shall be credited to the fund as if the transfer had not been made.

Added by Acts 1993, 73rd Leg., ch. 242, § 2.06.