NATURAL RESOURCES CODE
TITLE 7. RESOURCES PROGRAMS
CHAPTER 161. VETERANS LAND BOARD
SUBCHAPTER A. GENERAL PROVISIONS
§ 161.001. DEFINITIONS. (a) In this chapter:
(1) "Board" means the Veterans' Land Board.
(2) "Commissioner" means the Commissioner of the
General Land Office.
(3) "Land office" means the General Land Office.
(4) "Program" means the Veterans' Land Program.
(5) "Fund" means the veterans' land fund.
(6) "Bonds" means general obligation bonds issued by
the board for the purpose of funding the program.
(7) "Veteran" means a person who:
(A)(i) served not less than 90 continuous days,
unless sooner discharged by reason of a service-connected
disability, on active duty in the Army, Navy, Air Force, Coast
Guard, United States Public Health Service (as constituted under 42
U.S.C. Section 201 et seq.), or Marine Corps of the United States
after September 16, 1940, and who on the date of filing an
application under the program has not been dishonorably discharged
from the branch of the service in which the person served;
(ii) has at least 20 years of active or
reserve military service as computed when determining the person's
eligibility to receive retired pay under applicable federal law;
(iii) has enlisted or received an
appointment in the Texas National Guard, who has completed all
initial active duty training required as a condition of the
enlistment or appointment, and who on the date of filing the
person's application has not been dishonorably discharged from the
Texas National Guard; or
(iv) served in the armed forces of the
Republic of Vietnam between February 28, 1961, and May 7, 1975, if
the board adopts a rule regarding these veterans under Subsection
(b);
(B) at the time of the person's enlistment,
induction, commissioning, appointment, or drafting was a bona fide
resident of this state or has resided in this state at least one
year immediately before the date of filing an application under
this chapter; and
(C) at the time of the person's application under
this chapter is a bona fide resident of this state. The term
includes the unmarried surviving spouse of a veteran who died or who
is identified as missing in action if the deceased or missing
veteran meets the requirements of this section, with the exception
that the deceased or missing veteran need not have served 90
continuous days under Paragraph (A)(i) of this subdivision, and if
the deceased or missing veteran was a bona fide resident of this
state at the time of enlistment, induction, commissioning,
appointment, or drafting.
(b) Notwithstanding Subdivision (7) of Subsection (a) of
this section, the board may by rule change the definition of
"veteran" as necessary or appropriate to protect the best interests
of the program. If the board adopts a rule to change the definition
of "veteran" to include a person who served in the armed forces of
the Republic of Vietnam between February 28, 1961, and May 7, 1975,
the rule must include procedures for establishing proof of that
service.
(c) For purposes of this section, a person who has been
discharged from the branch of the service in which the person served
or from the Texas National Guard is considered not to have been
dishonorably discharged if the person:
(1) received an honorable discharge;
(2) received a discharge under honorable conditions;
or
(3) received a discharge and provides evidence from
the United States Department of Veterans Affairs, its successor, or
other competent authority that indicates that the character of the
person's duty has been determined to be other than dishonorable.
Acts 1977, 65th Leg., p. 2655, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 1; Acts 1989,
71st Leg., ch. 298, § 1, eff. June 14, 1989; Acts 1993, 73rd
Leg., ch. 242, § 1.01, eff. Aug. 30, 1993; Acts 2001, 77th Leg.,
ch. 83, § 1, eff. May 11, 2001; Acts 2003, 78th Leg., ch. 1145,
§ 1, 2, eff. June 20, 2003.
[Sections 161.002 to 161.010 reserved for expansion]
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
§ 161.011. VETERANS LAND BOARD DESIGNATED. The
Veterans Land Board is a state agency designated to perform the
governmental functions authorized in Article III, Section 49-b of
the Texas Constitution.
Acts 1977, 65th Leg., p. 2655, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.0111. SUNSET PROVISION. The Veterans' Land Board
is subject to review under Chapter 325, Government Code (Texas
Sunset Act), but is not abolished under that chapter. The board
shall be reviewed during the period in which state agencies
abolished in 2007 and every 12th year after 2007 are reviewed.
Added by Acts 1985, 69th Leg., ch. 798, § 2, eff. Sept. 1, 1985.
Amended by Acts 1987, 70th Leg., ch. 167, § 2.20(42), eff. Sept.
1, 1987; Acts 1991, 72nd Leg., 1st C.S., ch. 17, § 3.08, eff.
Nov. 12, 1991; Acts 1995, 74th Leg., ch. 970, § 2.03, eff. Sept.
1, 1995; Acts 1997, 75th Leg., ch. 1169, § 2.10, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 1481, § 2.04, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 1112, § 2.05, eff. Sept. 1,
2003.
§ 161.013. EXECUTIVE SECRETARY AND ASSISTANT EXECUTIVE
SECRETARY. (a) The board shall select an executive secretary and
an assistant executive secretary, each of whom shall be nominated
by the commissioner and approved by a majority of the board.
(b) The executive secretary and assistant executive
secretary shall perform all duties required of them by the board.
Acts 1977, 65th Leg., p. 2655, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.014. EMPLOYEES. (a) The commissioner may employ
all other employees that may be necessary for the discharge of the
board's duties. The employees may include stenographers, typists,
bookkeepers, surveyors, appraisers, and other employees in the
number and for the time necessary to perform these duties.
(b) The employees of the board are considered to be
employees of the land office, and civil and criminal laws
regulating the conduct and relations of the employees of the land
office apply to the employees of the board.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.015. COMPENSATION AND DUTIES OF EMPLOYEES. The
employees of the board shall be paid their compensation and shall
perform their duties with the same rules and requirements of the
general law governing other state employees in those respects.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.016. FISCAL AGENT. (a) The board may designate
the comptroller as the fiscal agent for payment of principal of and
interest on the bonds.
(b) The comptroller shall act as fiscal agent without
compensation.
(c) In the alternative, the board may employ a private
fiscal agent to perform these services and shall pay him adequate
compensation.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1997, 75th Leg., ch. 1423, § 14.16, eff.
Sept. 1, 1997.
§ 161.017. MEETINGS OF BOARD. (a) When necessary, the
board shall meet on the first and third Tuesdays of each month in
the land office, where its session shall be held and continue until
its docket is cleared. The board may recess at its own discretion.
(b) The chairman of the board may call special meetings of
the board at any time he thinks necessary by giving the other
members notice.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.018. MINUTES OF BOARD. Minutes of each meeting of
the board shall be kept, and only those matters that actually
transpire at the meeting shall be entered in the minutes.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.019. DEPOSITORY FOR PAPERS, RECORDS, AND
ARCHIVES. Papers, records, and archives of the board shall be
deposited and kept in the land office.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.020. PURCHASE OF SUPPLIES. The board may purchase
at state expense through the board of control supplies, including
stationery, stamps, printing, record books, and other things that
may be needed to carry on the board's functions as a state agency in
performing the duties imposed by this chapter.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.021. SEAL. The board shall procure and adopt a
seal bearing the words "Veterans Land Board" encircled by the oak
and olive branches common to other official seals.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.022. CHAPTER APPLICATION TO SUCCESSOR
BOARDS. The provisions of this chapter shall apply to any
successor of the board.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.023. CONFLICTS OF INTEREST. An officer,
employee, or paid consultant of a veterans' association or of a
trade association in the field of real estate sales, brokerage, or
development may not be an employee of the board, nor may a person
who cohabits with or is the spouse of an officer, managerial
employee, or paid consultant of a veterans' association or of a
trade association in the field of real estate sales, brokerage, or
development be an employee of the board grade 17 and over, including
exempt employees, according to the position classification
schedule under the General Appropriations Act.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
§ 161.024. LOBBYIST AS BOARD EMPLOYEE. A person who is
required to register as a lobbyist under Chapter 305, Government
Code, by virtue of his activities for compensation in or on behalf
of a profession related to the operation of the board, may not act
as the general counsel to the board.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
Amended by Acts 1987, 70th Leg., ch. 167, § 2.19(22), eff. Sept.
1, 1987.
§ 161.025. EQUAL PROTECTION FOR BOARD
MEMBERS. Appointments to the board shall be made without regard to
the race, color, handicap, sex, religion, age, or national origin
of the appointees.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
§ 161.026. REMOVAL OF BOARD MEMBER. (a) It is a ground
for removal from the board if an appointed member:
(1) does not have at the time of appointment the
qualifications required by Article III, Section 49-b, of the Texas
Constitution for appointment to the board;
(2) does not maintain during the service on the board
the qualifications required by Article III, Section 49-b, of the
Texas Constitution for appointment to the board;
(3) is unable to discharge his duties for a
substantial portion of the term for which he was appointed because
of illness or disability; or
(4) is absent from more than one-half of the regularly
scheduled board meetings which the member is eligible to attend
during each calendar year, except when the absence is excused by a
majority vote of the board.
(b) The validity of an action of the board is not affected by
the fact that it was taken when a ground for removal of an appointed
member of the board existed.
(c) If the executive secretary has knowledge that a
potential ground for removal exists, he shall notify the chairman
of the board of such ground. The chairman of the board shall then
notify the governor that a potential ground for removal exists.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
§ 161.027. ANNUAL ACCOUNTING. The board shall file
annually with the governor and the presiding officer of each house
of the legislature a complete and detailed written report
accounting for all funds received and disbursed by the board during
the preceding year. The form of the annual report and the reporting
time shall be that provided in the General Appropriations Act. The
report shall be included in the reports of the General Land Office.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
§ 161.028. CAREER LADDER. (a) The executive secretary
or his designee shall develop an intraagency career ladder program,
one part of which shall require the intraagency posting of all
nonentry level positions concurrently with any public posting.
(b) The program and posting requirements of this section
apply to the employees of the board and the employees of the land
office that support the board.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
§ 161.029. PERFORMANCE EVALUATIONS. (a) The executive
secretary or his designee shall develop a system of annual
performance evaluations based on measurable job tasks. All merit
pay for board employees must be based on the system established
under this section.
(b) The evaluations required by this section apply to the
employees of the board and the employees of the land office that
support the board.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
§ 161.030. AUDIT. The financial transactions of the
board are subject to audit by the state auditor in accordance with
Chapter 321, Government Code.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
Amended by Acts 1989, 71st Leg., ch. 584, § 8, eff. Sept. 1,
1989.
§ 161.031. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
executive secretary or his or her designee shall prepare and
maintain a written plan to assure implementation of a program of
equal employment opportunity whereby all personnel transactions
are made without regard to race, color, handicap, sex, religion,
age, or national origin. The plan shall include:
(1) a comprehensive analysis which meets federal and
state guidelines of all the agency's work force by race, sex, ethnic
origin, class of position, and salary or wages;
(2) plans for recruitment, evaluation, selection,
appointment, training, promotion, and other personnel policies;
(3) procedures by which a determination can be made of
significant underutilization in the agency work force of all
persons for whom federal and state guidelines encourage a more
equitable balance and steps reasonably designed to overcome any
identified underutilization; and
(4) objectives and goals, with appropriate timetables
for the achievement of the objectives and goals, assignments of
responsibility for their achievement, and an appropriate program
for reviewing and maintaining these goals and objectives once
achieved.
(b) The plan shall be filed with the governor's office
within 60 days of the effective date of this Act, cover an annual
period, and be updated at least annually. The governor's office
shall develop a biennial report to the legislature based on the
information submitted. Such report may be made separately or as a
part of other biennial reports made to the legislature.
(c) The personnel transactions referred to in Subsection
(a) of this section apply to the employees of the board and the
employees of the land office that support the board.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
§ 161.032. STANDARDS OF CONDUCT. (a) The board shall
provide to its members and employees as often as is necessary
information regarding their qualifications under this chapter and
their responsibilities under applicable laws relating to standards
of conduct for state officers or employees.
(b) The employees referred to in Subsection (a) of this
section are the employees of the board and the employees of the land
office that support the board.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
§ 161.033. PUBLIC DEBATE BEFORE BOARD. The board shall
develop and implement policies that will provide the public with a
reasonable opportunity to appear before the board and to speak on
any issue under the jurisdiction of the board.
Added by Acts 1985, 69th Leg., ch. 798, § 3, eff. Sept. 1, 1985.
[Sections 161.034 to 161.060 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
§ 161.061. GENERAL DUTIES OF BOARD. The board shall:
(1) authorize and execute negotiable bonds as provided
by law;
(2) provide by resolution for use of the fund in a
manner that will effectuate the intent of the constitution and the
law;
(3) prescribe the interest rates as provided by law;
(4) provide for the forfeiture of contracts of sale
and purchase and resale of forfeited land;
(5) conduct investigations it considers necessary;
and
(6) formulate policies and rules necessary and not in
conflict with the law to ensure the proper administration and to
carry out the intent and purposes of the law.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.02, eff.
Aug. 30, 1993.
§ 161.062. GENERAL DUTIES OF COMMISSIONER. The
commissioner is the chairman of the board and administrator of the
program as provided in Article III, Section 49-b of the Texas
Constitution, and shall perform the duties and functions of the
board prescribed by law except for those duties and functions
provided in Section 161.061 of this code, which shall be performed
by the board.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.063. RULES. (a) The board may adopt rules that
are not inconsistent with this chapter and that it considers
necessary or advisable. The board shall adopt rules and procedures
that it considers necessary to ensure the integrity of the program.
(b) The rules shall be considered a part of this chapter and
violation of the rules subject the offender to prosecution under
Sections 161.401 through 161.403 of this code.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 4, eff. Sept.
1, 1985.
§ 161.064. BOARD AUTHORITY TO MAKE INVESTIGATIONS. The
board may make any investigation it considers necessary relating to
transactions involving land purchases or sales under this chapter.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.065. OATHS; BOOKS, RECORDS, AND
DOCUMENTS. (a) The board is specifically authorized to
administer oaths and to examine the books, records, or other
documents dealing with or relating to the transactions of any
person involved in the transaction.
(b) The board may make copies of the books, records, and
other documents that in its judgment may show or tend to show fraud
on the board or a veteran or a violation or attempted violation
under this chapter.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.066. SUBPOENA DUCES TECUM. The board may issue a
subpoena duces tecum to require a person to produce books, records,
or any other documents for the board's examination.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.067. FORFEITURE OF CHARTER AND RIGHTS. (a) If a
corporation fails or refuses to comply with the orders of the board
under Sections 161.064 through 161.066 of this code, the
corporation shall forfeit its right to do business in this state,
and its permit or charter shall be canceled or forfeited by the
attorney general.
(b) The failure or refusal by a person is presumed to be
prima facie evidence of fraud on the board and veteran in violation
of this chapter, and the person shall lose and forfeit all rights
and benefits under this chapter.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.068. FORM OF INSTRUMENTS. The board may prescribe
the form and contents of notices, bids, applications, awards,
contracts, deeds, and instruments used by the board in carrying out
a project or plan if it is not in conflict with the law.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.069. FEES. (a) The board shall collect the fee
it considers necessary from each applicant under Subchapter G of
this chapter and deposit the fee in a bank. Interest received on
the deposit shall be credited to the General Land Office special
fund and shall be spent for administrative purposes.
(b) Repealed by Acts 1985, 69th Leg., ch. 798, § 22, eff.
Sept. 1, 1985.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 22, eff. Sept.
1, 1985.
§ 161.070. ADDITIONAL FEES. (a) The board shall set
and collect, for the use of the state, reasonable fees in amounts
determined by the board for services it may provide in connection
with processing and servicing of purchase applications and
contracts of sale and purchase and matters incidental to these
purchases. These fees may include but are not limited to the
following:
(1) appraisal fee for each application under
Subchapter G of this chapter;
(2) contract of sale and purchase transfer fee for
each transfer;
(3) mineral lease service fee for each lease executed
by purchasers;
(4) reappraisal fee, if required by the board;
(5) fee for each loan of abstract;
(6) fee for servicing and filing each easement;
(7) service fee for each contract of sale and
purchase;
(8) fee for homesite, severance, or paid-in-full deed;
(9) title examination fee;
(10) recording fees;
(11) fee for preparing credit reports;
(12) fee from each successful bidder under Section
161.319 of this code in an amount sufficient to pay for examination
of title, recording fees, and other expenses incidental to resale
of land under Section 161.319 of this code;
(13) fee for preparation of legal instruments,
including but not limited to deeds, contracts, affidavits, and
curative instruments;
(14) fee for legal research, including but not limited
to preparation of title opinions and other legal opinions,
preparation for court appearances;
(15) fee for general research, including but not
limited to preparation of certified copies of documents on file
with the board; and
(16) fees for any other services which may be
requested of the board.
(b) These fees may be added to the price of any land sold or
resold by the board.
(c) Fees or portions of fees that are in the opinion of the
board unused shall be refunded.
(d) Money received from payment of these fees and not
refunded shall be deposited in the State Treasury and credited to
the fund and shall be spent as provided in the General
Appropriations Act.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1983, 68th Leg., p. 406, ch. 81, § 21(o),
eff. Sept. 1, 1983; Acts 1985, 69th Leg., ch. 798, § 5, eff.
Sept. 1, 1985.
§ 161.071. PAMPHLETS. The board shall have published
pamphlets containing the provisions of this chapter and rules the
board desires, and these pamphlets shall be made available to any
interested veteran, veterans organization, or other interested
person in the state.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.072. LEASE BY BOARD. (a) The board may lease any
property that it owns on terms it considers proper.
(b) A lease for agricultural and grazing purposes is subject
to cancellation on the sale of the property to a veteran.
(c) The board may execute oil, gas, and mineral leases on
land purchased by it before it sells the land by following the same
procedure provided for the school land board in the lease of public
school land.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.073. CONTRACTS WITH PRIVATE ENTITIES. The board
may contract with a private entity to administer all or part of the
program if it is cost effective to do so.
Added by Acts 1985, 69th Leg., ch. 798, § 6, eff. Sept. 1, 1985.
§ 161.074. BOND ENHANCEMENT AGREEMENTS. (a) The board
may at any time and from time to time enter into one or more bond
enhancement agreements that the board determines to be necessary or
appropriate to place the obligation of the board, as represented by
the bonds, in whole or in part, on the interest rate, currency, cash
flow, or other basis desired by the board. Bond enhancement
agreements may include, on terms and conditions approved by the
board, interest rate swap agreements, currency swap agreements,
forward payment conversion agreements, agreements providing for
payments based on levels of or changes in interest rates or currency
exchange rates, agreements to exchange cash flows or a series of
payments, or agreements, including options, puts, or calls, to
hedge payment, currency, rate, spread, or other exposure. A bond
enhancement agreement is an agreement for professional services and
shall contain the terms and conditions and be for the period that
the board approves. The fees and expenses of the board in
connection with the issuance of bonds and the purchase and sale of
land may be paid from money in the fund, provided that payments due
from the board under a bond enhancement agreement, other than fees
and expenses, that relate to the payment of debt service on bonds
constitute payments of principal of and interest on the bonds.
(b) The resolution of the board authorizing a bond
enhancement agreement may authorize one or more designated officers
or employees of the board to act on behalf of the board in entering
into and delivering the bond enhancement agreement and in
determining or setting the counterparty and terms of the bond
enhancement agreement specified in the resolution, except that the
resolution must set the maximum amount and term for the bond
enhancement agreement.
(c) Unless the board elects otherwise in its approval of a
bond enhancement agreement, the bond enhancement agreement is not a
credit agreement for purposes of Chapter 1371, Government Code,
regardless of whether the bonds relating to the bond enhancement
agreement were issued in part under that law.
Added by Acts 1993, 73rd Leg., ch. 242, § 1.03, eff. Aug. 30,
1993. Amended by Acts 1999, 76th Leg., ch. 134, § 1, eff. May 20,
1999; Acts 2001, 77th Leg., ch. 1420, § 8.354, eff. Sept. 1,
2001.
§ 161.075. INFORMATION FOR LENDING
INSTITUTIONS. (a) In this section, "lending institution" has the
meaning assigned by Section 161.502.
(b) On request, the board shall provide to a lending
institution information regarding state land and housing benefits
programs for veterans in this state.
Added by Acts 2003, 78th Leg., ch. 69, § 3, eff. May 16, 2003.
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.
SUBCHAPTER E. VETERANS' LAND FUND
§ 161.171. MONEY AND LAND INCLUDED IN FUND. (a) The
veterans' land fund shall include:
(1) land purchased by the board from money in the fund;
(2) money attributable to general obligation bonds
issued and sold by the board, including proceeds from the issuance
and sale of the bonds;
(3) money received from the sale or resale of land or
rights in land purchased with the proceeds from the general
obligation bonds;
(4) money received from the sale or resale of land or
rights in land purchased with other money attributable to the
general obligation bonds;
(5) proceeds derived from the sale or other
disposition of the board's interest in:
(A) contracts for the sale of land or rights in
land; or
(B) a loan made under Subchapter K;
(6) interest and penalties received from the sale or
resale of land purchased under this chapter or from rights in the
land;
(7) bonuses, income, rents, royalties, and any other
pecuniary benefit received by the board from:
(A) land purchased under this chapter; or
(B) loans made under Subchapter K;
(8) money received as indemnity or forfeiture for the
failure of any bidder for purchase of general obligation bonds to
comply with the person's bid and accept and pay for the bonds or for
the failure of a bidder for purchase of land comprising a part of
the fund to comply with the person's bid and accept and pay for the
land and amounts received by the board under bond enhancement
agreements with respect to the bonds;
(9) interest received from investments of this money;
(10) any interest of the board in a loan made under
Subchapter K using money in the fund, including any title insurance
related to the loan or land purchased with the loan; and
(11) any equitable interest in property encumbered
under Subchapter K 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.
Acts 1977, 65th Leg., p. 2662, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.17, eff.
Aug. 30, 1993; Acts 1997, 75th Leg., ch. 71, § 1, eff. May 9,
1997; Acts 2001, 77th Leg., ch. 333, § 1, eff. May 21, 2001.
§ 161.173. INVESTMENT OF MONEY IN FUND. (a) Money in
the fund that is not immediately committed to paying principal of
and interest on the bonds, to the purchase of land, or to the
payment of expenses as provided in this chapter may be invested in:
(1) direct security repurchase agreements and reverse
security repurchase agreements made with state or national banks
that have main offices or branch offices in this state or with
primary dealers as approved by the Federal Reserve System;
(2) direct obligations of or obligations the principal
and interest of which are guaranteed by the United States;
(3) direct obligations of or obligations guaranteed by
the Federal Home Loan Banks, the Federal National Mortgage
Association, the Federal Farm Credit System, the Student Loan
Marketing Association, the Federal Home Loan Mortgage Corporation,
or a successor organization to one of those organizations;
(4) bankers' acceptances that:
(A) are eligible for purchase by members of the
Federal Reserve System;
(B) do not exceed 270 days to maturity; and
(C) are issued by a bank that has received the
highest short-term credit rating by a nationally recognized
investment rating firm;
(5) commercial paper that:
(A) does not exceed 270 days to maturity; and
(B) has received the highest short-term credit
rating by a nationally recognized investment rating firm;
(6) contracts written by the board in which the board
grants the purchaser the right to purchase securities in the
board's marketable securities portfolio at a specified price over a
specified period and for which the board is paid a fee and
specifically prohibits naked-option or uncovered option trading;
(7) obligations of a state or an agency, county, city,
or other political subdivision of a state, including revenue bonds
issued under Chapter 164, and mutual funds composed of these
obligations;
(8) an investment instrument, obligation, or other
evidence of indebtedness the payment of which is directly or
indirectly guaranteed by the full faith and credit of the United
States;
(9) an investment, account, depository receipt, or
deposit that is fully:
(A) insured by the Federal Deposit Insurance
Corporation or its successor; or
(B) secured by securities described by
Subdivision (2), (3), or (8) of this subsection;
(10) a collateralized mortgage obligation fully
secured by securities or mortgages issued or guaranteed by the
Government National Mortgage Association (GNMA) or any entity
described by Subdivision (3) of this subsection;
(11) a security or evidence of indebtedness issued by
the Farm Credit System Financial Assistance Corporation, the
Private Export Funding Corporation, or the Export-Import Bank; and
(12) any other investment authorized for investment of
state funds by the comptroller under Section 404.024, Government
Code.
(b) In this section:
(1) "Direct security repurchase agreement" means an
agreement under which the board buys, holds for a specified time,
and then sells back any of the following securities, obligations,
or participation certificates:
(A) United States government securities;
(B) direct obligations of or obligations the
principal and interest of which are guaranteed by the United
States;
(C) direct obligations of or obligations
guaranteed by the Federal Home Loan Banks, the Federal National
Mortgage Association, the Federal Farm Credit System, the Student
Loan Marketing Association, the Federal Home Loan Mortgage
Corporation, or a successor organization to one of those
organizations; or
(D) any other investment instrument, obligation,
or other evidence of indebtedness the payment of which is directly
or indirectly guaranteed by the full faith and credit of the United
States.
(2) "Market value" means the fair and reasonable
prevailing price at which a security is being sold on the open
market at the time of the appraisement of the security by the board.
(3) "Reverse security repurchase agreement" means an
agreement under which the board sells and after a specified time
buys back any of the securities, obligations, or participation
certificates listed in Paragraphs (A) through (D) of Subdivision
(1) of this subsection.
(c) The Veterans Land Board shall not invest more than $50
million in revenue bonds issued under Chapter 164 and shall report
to the governor, the senate committee on finance, and the house of
representatives committee on appropriations on or before December
1, 2000, regarding the status of its investment in such revenue
bonds and all related debt service.
Acts 1977, 65th Leg., p. 2662, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1989, 71st Leg., ch. 720, § 2, eff. June
14, 1989; Acts 1991, 72nd Leg., ch. 56, § 1, 2; Acts 1993, 73rd
Leg., ch. 242, § 1.18, eff. Aug. 30, 1993; Acts 1995, 74th Leg.,
ch. 265, § 2, eff. Aug. 28, 1995; Acts 1997, 75th Leg., ch. 1423,
§ 14.17, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch; 262, §
1, 2, eff. May 28, 1999; Acts 1999, 76th Leg., ch. 344, § 5.013,
eff. Sept. 1, 1999.
§ 161.1731. 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, § 2, eff. May 9, 1997.
§ 161.1732. 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, § 2, eff. May 9, 1997.
Amended by Acts 1999, 76th Leg., ch. 134, § 2, eff. May 20, 1999.
§ 161.174. USE OF FUND TO PAY PRINCIPAL AND
INTEREST. The principal of and interest on bonds issued by the
board shall be paid from money in the fund as provided by the
constitutional provision authorizing the bonds.
Acts 1977, 65th Leg., p. 2662, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.19, eff.
Aug. 30, 1993.
§ 161.175. USE OF FUND TO PAY EXPENSES RELATED TO THE
LAND. (a) The board may use money in the fund attributable to
bonds that have been issued and sold to pay:
(1) expenses of surveying and monumenting the land and
the tracts of land;
(2) the cost of constructing roads on the land or the
tracts of land;
(3) legal fees, recordation fees, and advertising
costs arising from the purchase and sale or resale of the land and
the tracts of land; and
(4) other similar costs necessary or incidental to the
purchase and sale of land acquired by the board.
(b) These expenses shall be added to the price of the land
when sold or resold by the board.
(c) The board may award a contract in an amount not to exceed
$25,000 to purchase supplies, materials, services, and equipment
for use by the board in connection with improvements to, repairs to,
or maintenance of land and with roadways and improvements located
on land that are undertaken by the board under this chapter to make
the land more marketable or useable without the necessity of
soliciting or obtaining competitive bids. The board may not award a
contract under this subsection in an amount that exceeds $25,000
without soliciting or obtaining competitive bids.
Acts 1977, 65th Leg., p. 2663, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.20, eff.
Aug. 30, 1993; Acts 2003, 78th Leg., ch. 25, § 1, eff. May 12,
2003.
§ 161.176. USE OF FUND TO PAY BOND EXPENSES. The board
may use money in the fund attributable to bonds issued and sold to
pay:
(1) legal fees and fees for financial advice necessary
in the opinion of the board to the sale of bonds;
(2) the expense of publishing notice of sale of an
installment of bonds;
(3) the expense of printing the bonds;
(4) the expenses of issuance of the bonds, including
the actual costs of travel, lodging, and meals of board members,
officers or employees of the board, the comptroller, and the
attorney general that are necessary in the opinion of the board to
effectuate the issuance, rating, and delivery of the bonds;
(5) the cost of manually signing the bonds;
(6) remuneration to any agent employed by the board to
pay the principal of and interest on the bonds;
(7) any amounts required to be paid to maintain the
federal tax exemption of interest on the bonds; and
(8) all other costs, fees, and expenses relating to
the issuance of the bonds.
Acts 1977, 65th Leg., p. 2663, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1989, 71st Leg., ch. 720, § 3, eff. June
14, 1989; Acts 1993, 73rd Leg., ch. 242, § 1.21, eff. Aug. 30,
1993; Acts 1997, 75th Leg., ch. 1423, § 14.18, eff. Sept. 1,
1997.
§ 161.177. PURCHASE AND DESTRUCTION OF BONDS. (a) The
board may use money in the fund to purchase on the open market any
bonds it has issued and sold, and the debt represented by these
bonds when purchased is considered canceled.
(b) Bonds purchased by the board under Subsection (a) of
this section shall be mutilated, burned, or otherwise destroyed by
the comptroller, who shall certify this fact to the board under the
seal of his office.
(c) No further interest shall be paid on these bonds.
Acts 1977, 65th Leg., p. 2664, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1997, 75th Leg., ch. 1423, § 14.19, eff.
Sept. 1, 1997.
§ 161.178. DISPOSAL OF EXCESS FUNDS. Subject to the
provisions of the constitution:
(a) Money in the fund that is not spent for the
purposes provided in this chapter shall remain in the fund until
there is sufficient money to retire fully bonds issued and sold by
the board.
(b) Money in the fund that is in addition to that
necessary to retire the bonds shall be deposited to the credit of
the General Revenue Fund to be appropriated as provided by law, and
the money necessary to retire the bonds shall be set aside and shall
remain in the fund.
(c) Money that becomes at a later time a part of the
fund after there is sufficient money to retire the bonds shall be
deposited to the credit of the General Revenue Fund.
Acts 1977, 65th Leg., p. 2664, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 17, eff. Sept.
1, 1985.
§ 161.179. SALE OF LAND AND LAND
CONTRACTS. 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 land contracts and related land.
Proceeds from the sale shall be deposited in the fund or account
from which the contracts or related land were sold and otherwise
applied in the manner set forth in 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.
Acts 1977, 65th Leg., p. 2664, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 18, eff. Sept.
1, 1985; Acts 1993, 73rd Leg., ch. 242, § 1.22, eff. Aug. 30,
1993.
§ 161.180. TEMPORARY TRANSFERS. Amounts temporarily
transferred from the fund to the veterans' housing assistance fund
or the veterans' housing assistance fund II 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, § 1.23.
SUBCHAPTER F. PURCHASE, SALE, AND OTHER DISPOSITION OF LAND
§ 161.2111. REPORT TO BOND REVIEW BOARD. With respect
to purchases made under this chapter, the Veterans' Land Board
shall file semiannually with the Bond Review Board a report on the
performance of loans made by the Veterans' Land Board in connection
with the purchases. The Bond Review Board shall review the reports
filed by the Veterans' Land Board under this section to assess the
performance of loans made under this chapter. The filing dates and
the contents of the reports must comply with any rules adopted by
the Bond Review Board.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 4, § 13.02, eff.
Aug. 22, 1991. Amended by Acts 2001, 77th Leg., ch. 1420, §
8.355, eff. Sept. 1, 2001.
§ 161.212. APPRAISAL. (a) Before purchasing land
under the provisions of this chapter, the board shall have an
appraisal of the property made to determine its value.
(b) A person making an appraisal on behalf of the board
shall be licensed or certified as an appraiser by the State of
Texas.
(c) The appraiser shall make a written report to the board
in the form and manner required by the board.
(d) Repealed by Acts 2003, 78th Leg., ch. 674, § 21, eff.
Sept. 1, 2003.
Acts 1977, 65th Leg., p. 2665, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 7, eff. Sept.
1, 1985; Acts 2003, 78th Leg., ch. 674, § 1, 21, eff. Sept. 1,
2003.
§ 161.213. SWORN REPORT. (a) Before the board
purchases land under Section 161.211 of this code or Subchapter G
of this chapter, it shall require the seller to execute a sworn
report to the board that shall include the following:
(1) the date the seller purchased the land;
(2) the amount the seller paid for the land if
purchased subsequent to June 7, 1949;
(3) from whom the seller purchased the land; and
(4) the improvements made on the land since the seller
purchased it and the cost of the improvements.
(b) If the land is purchased under Subchapter G of this
chapter, the sworn report shall include the following additional
information:
(1) if the seller by any manner or method is making the
down payment to the board on behalf of the veteran;
(2) if there is a lease arrangement between the seller
and the veteran, and if so, the duration, term, and amount to be
paid; and
(3) if there is an agreement or contract of any nature
between the seller and the veteran to transfer, sell, or convey at
any time in the future.
Acts 1977, 65th Leg., p. 2665, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.214. TITLE. (a) Before making payment for land,
the board shall have the title of the property sought to be
purchased examined and may require for this purpose a title
insurance policy or appropriate examination of title. The board
may submit the title to the attorney general for examination and
opinion.
(b) The board may purchase land that has mineral interests
outstanding or that is subject to title exceptions acceptable to
the board.
Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 2, eff. Sept.
1, 2003.
§ 161.215. PURCHASE OF LAND. Land purchased by the
board shall be acquired at the lowest price that can be obtained in
the opinion of the board, taking into consideration the quality,
location, natural advantages, and improvements of the land. The
land shall be paid for in cash and shall be clear of all liens and
shall be a part of the fund.
Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.216. COST OF LAND SOLD BY BOARD. Except for
forfeited land that may be resold by the board at less than actual
cost under Section 161.319 of this code, land shall not be sold by
the board at less than its actual cost.
Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.24, eff.
Aug. 30, 1993.
§ 161.217. APPOINTMENT OF LOCAL COMMITTEE. The
commissioners court of each county in the state shall appoint a
committee composed of three resident real property owners of the
county.
Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.218. WORK OF LOCAL COMMITTEE. (a) A person who
considers himself an eligible veteran under this chapter and who
desires to benefit under this chapter shall submit to the local
committee the forms prescribed by the board before he submits his
application of purchase and sales contract to the board. If the
veteran is a resident of one county and is seeking to purchase land
located in another, he shall submit the forms to the local committee
in both counties.
(b) The local committee shall consider the forms and shall
submit to the board a report concerning the financial
responsibility of the veteran, if it is known, a statement of
opinion as to whether or not the transaction is bona fide, a
statement as to the amount the committee considers to be the
reasonable value of the land in question, and a statement of the
credit rating of the veteran applicant.
(c) Notwithstanding Subsection (a) or (b) of this section,
or Section 161.217 of this subchapter, the committees of the
various counties shall function as provided by the board's rules
and may be abolished by the board if it is determined that they are
no longer necessary.
Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 8, eff. Sept.
1, 1985.
§ 161.219. BOARD INVESTIGATION. (a) The board may
make inquiries and investigations it considers proper to determine
the veteran's eligibility and qualifications and shall obtain from
the veteran a written credit report.
(b) If the board determines from the information submitted
or from its own inquiries and investigations that the financial
responsibility of the veteran leaves reasonable doubt as to his
ability to carry the contract through to completion and make all
payments, the board shall reject the application.
Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 9, eff. Sept.
1, 1985.
§ 161.220. EXEMPTION. The provisions of Sections
161.217 through 161.219 of this code do not apply to sales under
Sections 161.175, 161.231 through 161.234, and 161.319 of this code
unless the board so desires.
Acts 1977, 65th Leg., p. 2666, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.221. INITIATION OF SALE. The sale of land by the
board may be properly initiated by contract of sale and purchase,
and the contract shall be recorded in the deed records in the county
in which the land is located.
Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.222. PURCHASE PAYMENTS. (a) The purchaser shall
make an initial payment in an amount set by the board's rules for
land sold under this chapter.
(b) The balance of the selling price shall be amortized over
a period determined by the board not to exceed 40 years together
with interest at a fixed, variable, floating, or other rate or rates
determined by the board.
(c) The purchaser is entitled to pay any or all installments
still remaining unpaid on any installment date.
(d) In an individual case, the board may postpone for good
cause the payment of the whole or any part of an installment of the
selling price or interest on the selling price on terms the board
considers proper.
Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1979, 66th Leg., p. 1898, ch. 768, § 1,
eff. June 13, 1979; Acts 1985, 69th Leg., ch. 798, § 10, 20, eff.
Sept. 1, 1985; Acts 1993, 73rd Leg., ch. 242, § 1.25, eff. Aug.
30, 1993.
§ 161.223. BOARD TO SPECIFY TERMS. The board may
specify in each individual case the terms of the contract entered
into with the purchaser as long as they are not contrary to the
provisions of this chapter.
Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.224. TIME LIMIT ON TRANSFER. (a) No property
sold under this chapter may be transferred, sold, or conveyed in
whole or part until the original veteran purchaser has enjoyed
possession for a period of three years from the date of purchase of
the property and complied with the terms and conditions of this
chapter and rules of the board.
(b) If the veteran purchaser dies or becomes financially
incapacitated or if there is an involuntary transfer by court order
or proceedings including bankruptcy, sheriff or trustee sale, or
divorce, the property may be conveyed before the expiration of the
three-year period by the purchaser or his heirs, administrators, or
executors by complying with rules of the board and by securing the
approval of the board.
(c) After the three-year period, a purchaser may transfer,
sell, or convey land purchased under this chapter at any time if all
mature interest, principal, and taxes have been paid, the terms and
conditions of this chapter and rules of the board have been met, and
the approval of the board has been obtained.
Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.225. SALE TO A NONVETERAN. If the sale is made to
a person other than a qualified Texas veteran, the assignee and all
subsequent assignees shall assume an interest rate on the
indebtedness to the board determined by the board at an amount not
less than one percent a year greater than the rate determined by the
board for sale to veterans under Sections 161.175 and 161.231
through 161.234 of this code or Subchapter G of this chapter on the
date on which the transfer, sale, or conveyance is approved. If the
purchase contract is awarded in a divorce action or incident to a
written separation agreement, the interest rate shall not change.
Acts 1977, 65th Leg., p. 2667, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.226. DISPOSITION OF LAND THAT IS PAID
FOR. Property sold under this chapter may be transferred, sold, or
conveyed at any time after the entire indebtedness due to the board
has been paid.
Acts 1977, 65th Leg., p. 2668, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.227. LEASE OF LAND. (a) No land purchased under
this chapter may be leased by the purchaser for a term of more than
10 years except as follows:
(1) leases for oil, gas, and other minerals may be for
a term of not more than 10 years, and as long thereafter as such oil,
gas, and other minerals are produced from the land in commercial
quantities;
(2) leases for coal and lignite may be for a term of
not more than 40 years, and as long thereafter as such coal and
lignite are produced from the land in commercial quantities; and
(3) leases, whether referred to as leases, licenses,
or easements, for microwave, radio, or other communication towers,
may be for a term of not more than 50 years.
(b) No lease may contain a provision for option or renewal
of the lease or re-lease of the property for any term which would
cause the entire fixed term of such lease or leases to exceed the
applicable maximum fixed term set forth in Subsection (a)(1), (2),
or (3) above, and the taking of any such option, renewal, or
re-lease agreement in a separate instrument to take effect in the
future is prohibited. A lease or instrument that contains an
option, renewal, or re-lease agreement in violation of this section
is expressly declared to be void.
Acts 1977, 65th Leg., p. 2668, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 3080, ch. 812, § 1,
eff. June 17, 1981; Acts 2003, 78th Leg., ch. 674, § 3, eff.
Sept. 1, 2003.
§ 161.228. CONDITIONS OF LEASES. While the veteran is
indebted to the board for land purchased, if he executes or there
exists a lease or contract of sale of oil, gas, or other minerals,
chemicals, or hard metals or a lease or contract of sale for timber,
sand, gravel, or other materials that covers all or part of the land
and that would result in the depletion of the corpus of the tract,
at least one-half of all bonus money, delay rentals, and royalties
received as consideration for or payment under the oil, gas, and
mineral lease and at least one-half of all money received under a
lease or contract of sale of any other minerals, chemicals, hard
metals, timber, sand, gravel, and other materials or as much as is
required, shall be paid to the board by the owner of the lease or
contract of sale and applied by the board to the satisfaction of the
indebtedness.
Acts 1977, 65th Leg., p. 2668, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1981, 67th Leg., p. 3080, ch. 812, § 2,
eff. June 17, 1981.
§ 161.229. DEEDS. (a) When the entire indebtedness
due the state under the contract of sale is paid, the chairman of
the board shall execute a deed under seal to the original purchaser
of the land or to the last assignee whose assignment has been
approved by the board.
(b) None of the provisions of this chapter shall be
construed to prohibit the board from accepting full payment for a
portion of a tract and issuing a deed to the land according to the
rules of the board.
(c) Deeds issued by the board and executed by the chairman
under seal are ratified, confirmed, and validated whether they
convey all or only a part of the land contracted to be sold to the
veteran.
(d) If a deed is executed to a person other than the legal
owner or to a deceased grantee, the deed and the rights conveyed
still inure to the benefit of the legal owner.
Acts 1977, 65th Leg., p. 2668, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.230. DEATH OF PURCHASER. (a) If the purchaser of
the land dies while indebted to the board under a contract, his
rights, acquired under this chapter and the contract devolve on his
heirs, devisees, or personal representatives under the laws of this
state, but subject to all rights, claims, and charges of the board.
(b) Default by an heir, devisee, or personal representative
with respect to a right, claim, or charge of the board has the same
effect as default by the purchaser before his death.
Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.231. SUBDIVIDING LAND. Land acquired by the board
may be subdivided for sale into tracts of the size the board may
consider advisable.
Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.232. CONDITIONS FOR SALE OF LAND. Land acquired
and subdivided under Sections 161.175, 161.231, 161.233, and
161.234 of this code shall be offered for sale according to rules
adopted by the board and shall be sold by the board to veterans
qualified to participate in the program in conformity with the
provisions of this chapter relating to the sale of land purchased
generally by the board.
Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.233. DOWN PAYMENT. (a) The sale price of land
sold under Sections 161.175 and 161.231, 161.232, and 161.234 of
this code may include the addition of the expenses and fees in
Sections 161.069, 161.070, and 161.175 of this code. Provided,
however, no tract may be sold under Sections 161.175 and 161.231,
161.232, and 161.234 of this code at a price exceeding $40,000
unless the veteran pays the board in cash, in accordance with its
rules, a down payment equal to that portion of the sale price in
excess of $40,000. This down payment shall be in addition to the
initial payment required by Section 161.222 of this code and shall
be paid not later than the sale date.
(b) If the sale is not consummated, the down payment shall
be refunded to the veteran.
Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1979, 66th Leg., p. 1899, ch. 768, § 2,
eff. June 13, 1979; Acts 1985, 69th Leg., ch. 798, § 11, eff.
Sept. 1, 1985; Acts 1991, 72nd Leg., ch. 160, § 1, eff. Aug. 26,
1991.
§ 161.234. SALE TO OTHER PURCHASERS. The provisions of
Sections 161.175 and 161.231 through 161.233 of this code
notwithstanding, land acquired and subdivided under these sections
that has first been offered for sale to veterans and that has not
been sold to the purchasers may be sold to any purchaser in the same
manner as land forfeited under this chapter.
Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.235. RIGHTS OF SURVIVING SPOUSE. If an eligible
Texas veteran dies after he has filed with the board an application
and contract of sale to purchase through the board the tract
selected by him or her and before the purchase is completed, the
surviving spouse of the veteran may complete the transaction.
Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.236. NUMBER OF TRACTS PURCHASED. The board may
promulgate rules to determine the number of tracts of land that a
veteran may purchase under this chapter.
Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1999, 76th Leg., ch. 133, § 1, eff. May 20,
1999.
[Sections 161.237 to 161.280 reserved for expansion]
SUBCHAPTER G. PURCHASE AND SALE OF SELECTED LAND
§ 161.281. SELECTION OF LAND. (a) If a veteran desires
a particular tract of land located in this state, on proper showing
of eligibility to benefits under this chapter, he may be authorized
by the board to select the land that he desires and submit his
selection to the board on its prescribed form.
(b) The board shall establish a procedure that requires the
veteran to personally inspect the tract he has selected. The board
may by rule waive the inspection requirement. If the board grants
the veteran's request for a waiver, the veteran must designate in
writing a personal representative who will inspect the tract for
him. The veteran's representative shall submit to the board an
affidavit stating that he has inspected the tract the veteran
selected.
(c) In order to respond to market conditions, the board may
from time to time by rule set the minimum acreage that a veteran may
purchase. However, the board may not set the minimum acreage at
less than one acre.
Acts 1977, 65th Leg., p. 2669, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 12, eff. Sept.
1, 1985; Acts 2003, 78th Leg., ch. 674, § 4, eff. Sept. 1, 2003.
§ 161.282. PROCESSING APPLICATIONS. As far as
practical, applications shall be processed in the order in which
they are received by the board.
Acts 1977, 65th Leg., p. 2670, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.283. PURCHASE BY BOARD. (a) If the board is
satisfied with the value and desirability of the property selected
by the veteran, it may purchase the land from its owner on the
agreed terms.
(b) The board shall pay not more than $60,000 for the
property, but may pay more if the veteran pays to the board or the
board's designee in cash, in accordance with its rules, that
portion of the purchase price in excess of the amount that the board
agrees to pay. The amount shall be paid not later than the date on
which the board acquires title to the property.
(c) A cash payment by the veteran is considered a down
payment on the price of the land when sold to the veteran by the
board and is in addition to the initial payment required by Section
161.222 of this code.
Acts 1977, 65th Leg., p. 2670, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1979, 66th Leg., p. 1899, ch. 768, § 3,
eff. June 13, 1979; Acts 1991, 72nd Leg., ch. 160, § 2, eff. Aug.
26, 1991; Acts 2003, 78th Leg., ch. 674, § 5, eff. Sept. 1, 2003.
§ 161.284. APPRAISAL AND TITLE. The board shall have an
appraisal of the property made as it considers necessary to
determine the value and, before consummating the purchase, shall
satisfy itself regarding the title as provided in Section 161.214
of this code. The board may by rule require an on-site meeting
between the appraiser and the veteran.
Acts 1977, 65th Leg., p. 2670, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 13, eff. Sept.
1, 1985.
§ 161.285. SEPARATE TRANSACTIONS. (a) No transaction
under this chapter may be considered together with any other
transaction to constitute a block deal between the state and two or
more veteran purchasers, and each tract of land is considered as a
wholly separate entity without dependence on any other tract of
land, substance, matter, person, or thing in determining its value,
purchase, or sale under this chapter.
(b) None of the provisions of this chapter may be construed
to prevent the purchase or sale or both of contiguous tracts of land
to separate purchasers as long as the value of the land is
determined in the manner provided in Section 161.284 of this code.
Acts 1977, 65th Leg., p. 2670, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.286. PURCHASE PREFERENCE. (a) The property
acquired by the board becomes a part of the fund, but the veteran
who has selected the land has a preference right to purchase the
land from the board.
(b) To be entitled to the preference right, the veteran
shall agree in writing before the board purchases the land to
purchase the land from the board for the price paid for it.
(c) If the veteran fails or refuses to exercise the
preference right, the land may be sold by the board in the same
manner provided for the sale of land forfeited under this chapter.
Acts 1977, 65th Leg., p. 2670, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.287. RULES GOVERNING SALE. The rules governing
the sale of land under this subchapter are governed by the
provisions of this chapter relating to sale of land generally by the
board except where those provisions conflict with this subchapter.
Acts 1977, 65th Leg., p. 2670, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.288. REFUND. If the title to the land is not
approved and accepted by the board, any amount paid to the board or
the board's designee in excess of the amount that the board agreed
to pay for the selected land shall be refunded to the veteran
together with any other down payment remitted to the board.
Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 6, eff. Sept.
1, 2003.
[Sections 161.289 to 161.310 reserved for expansion]
SUBCHAPTER H. FORFEITURE
§ 161.311. BOARD JUDGE OF FORFEITURE. The board is the
sole judge of forfeiture of any purchase contract under this
chapter and any person availing himself of the provisions of this
chapter by so doing agrees to abide by this chapter.
Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.312. FORFEITURE BY BOARD. (a) If a portion of
the principal of or interest on any sale is not paid when due, or if
the provisions of this chapter, the contract, or the rules of the
board are not complied with, the contract of sale and purchase is
subject to forfeiture by action of the board on 30 days written
notice to the original purchaser and his vendee.
(b) The notice shall state the reason why the contract of
sale and purchase is subject to forfeiture and is sufficient if
given by certified mail to the last known address of the original
purchaser and his vendees.
Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1999, 76th Leg., ch. 134, § 3, eff. May 20,
1999.
§ 161.313. CORRECTION OF REASON FOR FORFEITURE. If the
person corrects or cures the reason for forfeiture within the
30-day notice period, the board shall not enter an order of
forfeiture.
Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.314. TIME OF FORFEITURE. The forfeiture is
effective at the time the board meets and adopts a resolution
directing its chairman to endorse on the wrapper that contains the
papers of the sale or on the purchase contract filed in the land
office the word "forfeited" or words of similar import and the date
of the action and to officially sign the document. At that time,
the land and all payments previously made are forfeited.
Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.315. NOTICE TO COUNTY CLERK. Notice of the
board's action in forfeiting the original contract shall be mailed
to the county clerk of the county in which the land is located and
the clerk shall:
(1) enter a notation of the forfeiture on the margin
of the page or pages containing the record of the original contract;
or
(2) record the notice of forfeiture.
Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 7, eff. Sept.
1, 2003.
§ 161.316. EFFECT OF FORFEITURE ON LEASES. On
forfeiture, the full title to the land, including both surface and
mineral estates, shall revest in the board, and the board shall
recognize and continue in force and effect any outstanding valid
oil, gas, or mineral lease and collect all rentals, royalties, or
other amounts payable under the lease.
Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.317. REINSTATEMENT OF PURCHASE. (a) If a sale is
forfeited and the title to the land revested in the fund, the
original purchaser or the original purchaser's vendee is entitled
to reinstate the purchase contract at any time before the date on
which the board meets and orders the land to be advertised for
resale or for lease for mineral development but not after that time.
If a contract is forfeited more than two times, the board may
require, as a condition of reinstatement, that the purchaser or the
purchaser's vendee pay the account in full.
(b) A person who exercises a right of reinstatement shall:
(1) pay all delinquent installments, penalties, and
costs incident to the reinstatement; and
(2) fulfill any other requirements prescribed by the
board.
Acts 1977, 65th Leg., p. 2671, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 8, eff. Sept.
1, 2003.
§ 161.318. RESALE OF LAND. Land included in a forfeited
contract is subject to resale under Section 161.319 of this code.
Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.319. RESALE OF FORFEITED LAND. (a) Resale of
forfeited land under this chapter may be made to the highest bidder
under terms and conditions and at the time and in the manner
prescribed by the board in its rules, the provisions of this chapter
notwithstanding.
(b) The board may reject any and all bids.
(c) If the successful bidder refuses to execute a contract
of sale and purchase, the money submitted with the person's bid is
forfeited and shall be deposited in the State Treasury and credited
to the fund.
Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1993, 73rd Leg., ch. 242, § 1.26, eff.
Aug. 30, 1993.
§ 161.320. LATE PAYMENTS; DEFAULT INTEREST
RATE. (a) The board may impose charges for late payments.
(b) In addition to charging for late payments under
Subsection (a), the board may set and impose a default rate of
interest on:
(1) the past due amounts; or
(2) the entire unpaid balance.
Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1985, 69th Leg., ch. 798, § 14, eff. Sept.
1, 1985; Acts 2003, 78th Leg., ch. 674, § 9, eff. Sept. 1, 2003.
§ 161.321. VACATING PREMISES. If the board declares a
forfeiture under a purchase contract, the purchaser shall vacate
the premises within 45 days after the date of the letter giving
notice of the declaration. The letter shall be sent by registered
mail to the last known address of the purchaser.
Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.322. ENFORCEMENT OF FORFEITURE AND PROTECTION OF
RIGHTS. The board, by and through the attorney general, shall
institute legal proceedings that are necessary to enforce the
forfeiture or to recover the full amount of the delinquent
installments, interest, and other penalties that may be due to the
board at the time the forfeiture occurred or to protect any other
right to the land.
Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.323. LIABILITY. The liability of the original
veteran purchaser and any subsequent assignee or assignees of the
veteran are joint and several, but the original veteran purchaser
is primarily liable for payment of the money under the original
contract of sale and purchase. The board may release an assignor
from liability under this section if at least three years have
passed since the approved assignment.
Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 10, eff. Sept.
1, 2003.
§ 161.324. DEFENSES IN LAWSUITS. After obtaining the
permission of the legislature, in any action brought in the courts
against the state involving the title to a tract of land to which
the state has a warranty deed, the state is entitled to plead all
statutes of limitations in the general laws of this state, but this
shall not be considered as a limitation to any other defense the
state may have.
Acts 1977, 65th Leg., p. 2672, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
[Sections 161.325 to 161.360 reserved for expansion]
SUBCHAPTER I. INSURANCE
§ 161.361. DEFINITION. In this subchapter, "person
purchasing land under the program" means a person or a person's
successor or assign who buys land from the board under a contract of
sale and purchase regardless of whether the land is sold under
Sections 161.175 and 161.231 through 161.234 or Section 161.319 or
Subchapter G, or who buys land using a mortgage loan under
Subchapter K.
Acts 1977, 65th Leg., p. 2673, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 11, eff. Sept.
1, 2003.
§ 161.362. INSURANCE REQUIREMENT. (a) Persons
purchasing land under the program shall carry insurance on the
improvements on the property in an amount that the board considers
necessary. Failure to do so will subject the contract to forfeiture
or the mortgage to foreclosure.
(b) The board may promulgate rules necessary to enforce this
subchapter.
(c) Repealed by Acts 2003, 78th Leg., ch. 674, § 21, eff.
Sept. 1, 2003.
Acts 1977, 65th Leg., p. 2673, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 1997, 75th Leg., ch. 1423, § 14.20, eff.
Sept. 1, 1997; Acts 2003, 78th Leg., ch. 674, § 12, 21, eff.
Sept. 1, 2003.
§ 161.363. INSURANCE CONTRACT. The board may enter
into a contract or agreement with one or more insurance companies
authorized to do business in this state to provide life,
disability, or other insurance coverage to persons purchasing land
under the program, if it is in the best interest of the program.
Acts 1977, 65th Leg., p. 2673, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 13, eff. Sept.
1, 2003.
§ 161.366. INSURANCE NOT MANDATORY. It is not mandatory
that a person purchasing land under the program accept the offer of
the insurance coverage, and refusal by the person to accept the
offer of the coverage shall not be a ground for the board to decline
to enter into a contract of sale and purchase or a mortgage with the
person.
Acts 1977, 65th Leg., p. 2674, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 14, eff. Sept.
1, 2003.
§ 161.368. COLLECTION OF PREMIUM. The board may collect
or provide for collection of the insurance premium in a reasonable
manner.
Acts 1977, 65th Leg., p. 2674, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 15, eff. Sept.
1, 2003.
§ 161.370. CANCELLATION BY INSURER. The contract or
agreement shall not prohibit cancellation by the insurer of the
entire contract on reasonable notice to the board but shall
prohibit cancellation of individual coverage except as provided in
this subchapter.
Acts 1977, 65th Leg., p. 2674, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 16, eff. Sept.
1, 2003.
§ 161.371. TERMINATION OF INDIVIDUAL
COVERAGE. (a) Individual insurance coverage may be terminated
for any person on terms agreed to by the insurer and the board
(b) Repealed by Acts 2003, 78th Leg., ch. 674, § 21, eff.
Sept. 1, 2003.
(c) Repealed by Acts 2003, 78th Leg., ch. 674, § 21, eff.
Sept. 1, 2003.
Acts 1977, 65th Leg., p. 2674, ch. 871, art. I, § 1, eff. Sept. 1,
1977. Amended by Acts 2003, 78th Leg., ch. 674, § 17, 18, 21,
eff. Sept. 1, 2003.
[Sections 161.372 to 161.400 reserved for expansion]
SUBCHAPTER J. PENALTIES
§ 161.401. PENALTY FOR CERTAIN TRANSACTIONS. Any
person, seller, veteran, or appraiser who knowingly makes, utters,
publishes, passes, or uses any false, fictitious, or forged paper,
document, contract, affidavit, application, assignment, or other
instrument in writing in connection with or pertaining to any
transaction under this chapter is guilty of a felony and on
conviction shall be punished by imprisonment in the state
penitentiary for not less than two nor more than 10 years, or by a
fine of not less than $1,000 nor more than $10,000, or by both.
Acts 1977, 65th Leg., p. 2674, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.402. PENALTY RELATING TO CERTAIN PURCHASES, SALES,
AND RESALES OF LAND. A person who knowingly files a false,
fictitious, or forged paper, document, contract, affidavit,
application, assignment, or other instrument in writing relating to
the purchase, sale, or resale of land under this chapter is guilty
of a felony and on conviction shall be punished by imprisonment in
the state penitentiary for not less than two nor more than 10 years
or by a fine of not less than $1,000 nor more than $10,000, or by
both.
Acts 1977, 65th Leg., p. 2675, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 161.403. PENALTY FOR DEFRAUDING VETERAN AND STATE. A
person who defrauds a veteran of his rights and benefits under this
chapter by an act of fraud, duress, deceit, coercion, or
misrepresentation or a person who uses the purposes or provisions
of this chapter to defraud the state or any veteran by an act of
fraud, duress, coercion, misrepresentation, or deceit, is guilty of
a felony, and on conviction shall be punished by imprisonment in the
state penitentiary for not less than two nor more than 10 years or
by a fine of not less than $1,000 nor more than $10,000, or by both.
Acts 1977, 65th Leg., p. 2675, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
[Sections 161.404 to 161.500 reserved for expansion]
SUBCHAPTER K. LAND LOANS
§ 161.501. PURPOSE OF SUBCHAPTER; CONSTRUCTION. The
purpose of this subchapter is to authorize the board to provide
loans to veterans for the purchase of land that are secured by a
mortgage, deed of trust, or other lien on the land. This subchapter
shall be liberally construed to effect that purpose.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.502. DEFINITIONS. In this subchapter:
(1) "Lending institution" means a bank, savings bank,
savings and loan association, credit union, trust company, mortgage
banker, mortgage company, life insurance company, or other
financial institution that customarily provides service or aids in
the financing of mortgages on single-family residential housing, or
a holding company for one of those institutions.
(2) "Loan" means a veterans' land loan made or acquired
by the board under this subchapter secured by a mortgage, deed of
trust, or other lien on the land purchased with the proceeds of the
loan.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.503. LOANS. (a) In addition to purchasing land
under Subchapters F and G, the board shall make or acquire loans
with money from the fund to finance land purchases by eligible
persons in accordance with this subchapter and rules adopted by the
board.
(b) The board may enter into contracts with lending
institutions to assist in processing, originating, servicing, or
administering loans under this subchapter.
(c) The board shall adopt credit, underwriting, and
appraisal standards that protect the best interest of the program
and limit the exposure of the fund to any losses.
(d) The board shall adopt rules as necessary to implement
this subchapter.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
Amended by Acts 2003, 78th Leg., ch. 674, § 19, eff. Sept. 1,
2003.
§ 161.504. ELIGIBILITY FOR LOAN. (a) To qualify for a
loan under this subchapter, a person must be a veteran at the time
the person applies for the loan. If an eligible veteran dies after
filing an application for a loan, the veteran's surviving spouse
may complete the transaction.
(b) The board by rule may determine the number of loans that
a person may receive under this subchapter.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.505. SECURITY FOR LOAN. A disbursement of money
on a loan may not be made unless the loan is secured by a mortgage,
deed of trust, or other lien on the land purchased with the proceeds
of the loan. A mortgage, deed of trust, or other lien may be a
participation in a lien securing any other loan for the purchase of
the property, including a lien securing a home loan under Chapter
162.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.506. INITIAL PAYMENT OR EQUITY. The board may
require an initial payment on a loan or may require an investment in
the land by the loan recipient in an amount set by the board by rule.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.507. LOAN PAYMENTS. (a) The final principal
payment on a loan shall be made not later than the 40th anniversary
of the date of the loan.
(b) The board shall determine the maximum principal amount
of loans to the same eligible person that may be outstanding at any
time.
(c) Payments on the loan must be made at times determined by
the board.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.508. FEES; INTEREST. (a) All fees to be charged
to a person who receives a loan must be approved by the board.
(b) Any fees or expenses incurred in connection with a loan,
including the cost of insurance, may be charged to the loan
recipient and included in the principal amount of the loan.
(c) A loan must bear a fixed, variable, floating, or other
rate or rates of interest determined by the board. The board may
set the interest rate or rates to provide a margin over the rate
paid by the board on bonds issued by the board under this chapter.
(d) The difference between the cost of the money to the
board and the interest rate or rates charged to a loan recipient may
be used in whole or in part to defray the expense of administering
the program.
(e) To ensure the maximum benefit of the program to the loan
recipient, the board shall adopt rules:
(1) relating to the fees, charges, and interest rates
that may be charged by a lending institution in connection with
financing the purchase of land with money that does not come from
the fund; and
(2) limiting to the maximum extent practical the fees,
charges, and interest rates to the fees, charges, and interest
rates that would be collected by the lending institution in the
normal course of the institution's mortgage lending business.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.509. LATE PAYMENTS; DEFAULT INTEREST RATE. (a)
The board may impose charges for late payments.
(b) In addition to charging for late payments under
Subsection (a), the board may set and impose a default rate of
interest on:
(1) the past due amounts; or
(2) the entire unpaid balance.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
Amended by Acts 2003, 78th Leg., ch. 674, § 20, eff. Sept. 1,
2003.
§ 161.510. COMBINATION WITH HOME LOAN. The board may:
(1) permit a person to combine a loan made under this
subchapter with a home loan made under Chapter 162 if the portion of
the loan made under this subchapter is funded from amounts on
deposit in the fund and the portion of the loan made under Chapter
162 is not funded from amounts in the fund; and
(2) prescribe the amounts of and forms for a combined
loan under this section.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.511. TIME LIMIT ON TRANSFER OF LAND. (a) Except
as provided by Subsection (c), a recipient of a loan may not lease,
sell, or otherwise transfer in whole or part land or any interest in
land against which there is a mortgage, deed of trust, or any other
lien securing the loan:
(1) before the third anniversary of the date the
recipient purchases the land; and
(2) unless the recipient has complied with any other
terms and conditions provided by this subchapter and the rules of
the board.
(b) After the three-year period prescribed by Subsection
(a), land may be sold or otherwise transferred, subject to any lien
securing a loan, if:
(1) all interest, principal, and taxes that are due
have been paid;
(2) the terms and conditions of this subchapter and
rules of the board have been met; and
(3) the board approves the sale or other transfer.
(c) The board may waive the three-year period prescribed by
Subsection (a):
(1) in a case of death, bankruptcy, financial
incapacity, or divorce of the loan recipient;
(2) if a loan recipient is forced to move because of a
change in employment or because the recipient's home is condemned
through no fault of the recipient; or
(3) at any other time the board considers a waiver to
be in the best interest of the program.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.512. INCREASE IN INTEREST RATE; ACCELERATED
REPAYMENT. If a recipient of a loan does not comply with the
requirements of Section 161.511(a) and the board does not waive the
three-year period prescribed by that section, the board by rule may
provide for:
(1) an increase in the interest rate on the loan;
(2) the acceleration of repayment of the principal of
and interest on the loan; or
(3) any other remedy the board considers appropriate.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
§ 161.513. FORECLOSURE AND RESALE. The board shall
adopt rules providing procedures governing foreclosure of a lien
securing a loan.
Added by Acts 2001, 77th Leg., ch. 333, § 2, eff. May 21, 2001.
