NATURAL RESOURCES CODE
CHAPTER 164. VETERANS' FINANCIAL ASSISTANCE PROGRAM
§ 164.001. PURPOSE AND POLICY. (a) The legislature
declares that it is the policy of the state to provide financial
assistance to veterans of the state in recognition of their service
to this state and the United States and to honor veterans with a
final resting place and with lasting memorials that commemorate
their service.
(b) The legislature declares that existing mechanisms for
implementing the policy stated in Subsection (a) of this section
may be enhanced by adoption of this chapter and implementation of
the financial assistance programs authorized by this chapter.
(c) The legislature finds that this chapter and the
financial assistance programs authorized by this chapter are in
furtherance of a public purpose.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 2001, 77th Leg., ch. 981, § 1.
§ 164.002. DEFINITIONS. (a) In this chapter:
(1) "Board" means the Veterans' Land Board.
(2) "Bonds" means the revenue bonds issued by the
board under this chapter.
(3) "Financial assistance" means the purchase of land,
the sale of land to veterans, and the making of home mortgage loans
to veterans, as provided for in this chapter.
(4) "Home" means a dwelling within this state in which
a veteran intends to reside as the veteran's principal residence.
(5) "Lending institution" means a bank, trust company,
savings bank, national banking association, savings and loan
association, building and loan association, mortgage banker,
mortgage company, credit union, life insurance company, or other
financial institution that customarily provides service or aids in
the financing of mortgages on single-family residential housing
that has been approved for participation by the board, including a
holding company for a lending institution.
(6) "Veteran" has the meaning assigned by Section
161.001.
(7) "Veterans cemetery" means a burial ground operated
solely for the burial of veterans and their eligible relatives.
(8) "Veterans home" means a life care facility,
retirement home, retirement village, home for the aging, or other
facility that furnishes shelter, food, medical attention, nursing
services, medical services, social activities, or other personal
services or attention to veterans.
(b) Repealed by Acts 2003, 78th Leg., ch. 1145, § 5.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 1997, 75th Leg., ch. 71, § 5, eff. May 9,
1997; Acts 2001, 77th Leg., ch. 981, § 2; Acts 2003, 78th Leg.,
ch. 1145, § 4, 5, eff. June 20, 2003.
§ 164.003. FINANCIAL ASSISTANCE PROGRAMS. The board
may establish one or more programs for providing financial
assistance to veterans under this chapter. A program may be limited
to the purpose of purchasing land, selling land to veterans, making
home mortgage loans to veterans, or providing one or more veterans
homes or veterans cemeteries. To the extent a financial assistance
program is for the purpose of purchasing land or selling land to
veterans, the program shall be administered, to the extent
consistent with this chapter and otherwise deemed practicable and
desirable by the board, in accordance with the board's Veterans'
Land Program. To the extent a financial assistance program is for
the purpose of making home mortgage loans to veterans, the program
shall be administered, to the extent consistent with this chapter
and otherwise deemed practicable and desirable by the board, in
accordance with the board's Veterans' Housing Assistance Program.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 1997, 75th Leg., ch. 71, § 6, eff. May 9,
1997; Acts 2001, 77th Leg., ch. 981, § 3.
§ 164.004. RULES. The board shall adopt rules providing
for the administration of its financial assistance programs
established under this chapter, including rules concerning:
(1) the purchasing of land and the selling of land to
veterans;
(2) the making of home mortgage loans to veterans;
(3) the use of insurance on land and homes as deemed
appropriate by the board, as further security for land sold or home
mortgage loans made;
(4) the criteria for approving lending institutions
participating in programs;
(5) the terms and conditions of a contract made with a
lending institution;
(6) the construction, acquisition, ownership,
operation, maintenance, enlargement, improvement, or furnishing or
equipping of veterans homes or veterans cemeteries; and
(7) other matters as the board deems appropriate.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 1997, 75th Leg., ch. 71, § 7, eff. May 9,
1997; Acts 2001, 77th Leg., ch. 981, § 4.
§ 164.005. RIGHTS AND POWERS OF BOARD. (a) In
connection with the administration of its financial assistance
programs under this chapter, the board has and may exercise, to the
extent not inconsistent with this chapter, all the rights and
powers granted to it by Chapters 161 and 162 of this code relating
to the administration of the board's Veterans' Land Program and
Veterans' Housing Assistance Program.
(b) In administering any of the board's financial
assistance programs relating to veterans homes, the board, or the
board in conjunction with other state or federal agencies, may
acquire by purchase, gift, devise, lease, or a combination of those
methods, construct, operate, enlarge, improve, furnish, or equip
one or more veterans homes.
(c) The board may enter into an agreement with any person
for the management or operation of all or part of a veterans home or
all or part of a veterans cemetery. The board may delegate to the
manager the authority to manage the veterans home or veterans
cemetery and to employ and discharge employees.
(d) The board may not authorize the use of any veterans home
in a manner that would entitle the United States to recover any
amounts pursuant to 38 U.S.C. Section 8136, as amended, or any
successor statute.
(e) On terms and conditions acceptable to it, the board may
accept and administer gifts, grants, or donations for the support,
acquisition, construction, operation, enlargement, improvement,
furnishing, or equipping of veterans homes or veterans cemeteries
and may enter into agreements with a nonprofit corporation for the
solicitation, receipt, and disbursement of the gifts, grants, or
donations.
(f) The board, the chairman of the Texas Veterans
Commission, and two representatives of the veterans community
selected by the chairman of the Texas Veterans Commission shall:
(1) establish the guidelines for determining:
(A) the location and size of veterans cemeteries;
and
(B) the eligibility for burial in a veterans
cemetery; and
(2) select up to seven locations across the state for
veterans cemeteries.
(g) In administering any of the board's financial
assistance programs relating to veterans cemeteries, the board, or
the board in conjunction with other state or federal agencies, may
plan and design, operate, maintain, enlarge, or improve veterans
cemeteries.
(h) Of the funds available in the veterans' land fund, the
veterans' housing assistance fund, and the veterans' housing
assistance fund II that may be used for veterans cemeteries, the
board may spend not more than $7 million each fiscal year to plan
and design, operate, maintain, enlarge, or improve veterans
cemeteries. The board may not use funds from the veterans' land
fund, the veterans' housing assistance fund, or the veterans'
housing assistance fund II to acquire land to be used for a veterans
cemetery.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 1997, 75th Leg., ch. 71, § 8, eff. May 9,
1997; Acts 1999, 76th Leg., ch. 134, § 6, eff. May 20, 1999;
Acts 2001, 77th Leg., ch. 981, § 5.
§ 164.0051. LOCATION OF VETERANS HOMES. To the extent
practicable, when determining the location of new veterans homes in
this state, the board shall consider:
(1) the geographic proximity to existing state
veterans homes with special regard to areas not served by state
veterans homes;
(2) the economic impact of the veterans home on the
local community and the veterans program; and
(3) the areas with a significant veteran population,
without regard to international boundaries.
Added by Acts 2001, 77th Leg., ch. 746, § 1, eff. June 13, 2001.
§ 164.006. ISSUANCE OF BONDS. For the issuance of bonds
under this chapter, the board may exercise the authority granted to
the governing body of an issuer with regard to issuance of
obligations under Chapter 1371, Government Code, to the extent that
it is not inconsistent with this chapter.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.358, eff.
Sept. 1, 2001.
§ 164.007. CONDITIONS FOR ISSUANCE OF
BONDS. (a) Bonds may be issued in various series and issues.
(b) Bonds shall be payable as provided by the board and may
mature serially or otherwise.
(c) Bonds shall be redeemable before maturity or subject to
tender for purchase at the price or prices and under the terms and
conditions fixed by the board in the resolution providing for the
issuance and sale of the bonds.
(d) Bonds may bear a fixed, variable, floating, or other
rate or rates of interest or may bear no interest, as determined by
the board.
(e) Bonds may be sold at public or private sale at a price or
prices and on terms determined by the board.
(f) Bonds issued under this chapter for a purpose other than
buying back or refunding general obligation bonds issued under
Article III, Section 49-b, 49-b-1, or 49-b-2, of the Texas
Constitution may not in the aggregate exceed $1 billion.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 2001, 77th Leg., ch. 875, § 1, eff. June
14, 2001.
§ 164.008. FORM OF BONDS. (a) The bonds may be issued
in the form, denominations, and manner and under the terms,
conditions, and details as provided by the board in the resolution
authorizing their existence.
(b) The bonds shall be signed and executed as provided by
the board's resolution or order authorizing the issuance of the
bonds.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993.
§ 164.009. SECURITY FOR THE BONDS. (a) The bonds
issued under this chapter shall be special obligations of the
board. As security for the payment of the bonds, the board may
provide for a pledge of and lien or mortgage on:
(1) the receipts of all kinds of the veterans' land
fund, the veterans' housing assistance fund, and the veterans'
housing assistance fund II determined by the board, on the basis of
facts, circumstances, and expectations at the time of issuance of
the bonds, not to be required for the payment of principal of or
interest on the general obligation bonds issued by the board to
augment the funds or to make payments with respect to principal or
interest under a bond enhancement agreement with respect to the
general obligation bonds;
(2) the assets of the veterans' land fund, the
veterans' housing assistance fund, or the veterans' housing
assistance fund II determined by the board on the basis of facts,
circumstances, and expectations at the time of issuance of the
bonds not to be required for the purposes of the fund;
(3) the payments and repayments received by the board
from the board's financial assistance provided under this chapter;
(4) other program revenues;
(5) other available revenues of the board; and
(6) one or more veterans homes.
(b) The pledge and lien or mortgage are to be provided for
and determined in accordance with the resolution of the board
providing for the issuance and sale of the bonds.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 1993, 73rd Leg., ch. 242, § 3.02; Acts
1997, 75th Leg., ch. 71, § 9, eff. May 9, 1997; Acts 1999, 76th
Leg., ch. 134, § 7, eff. May 20, 1999; Acts 2003, 78th Leg., ch.
590, § 1.
§ 164.010. 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 deems 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 cost to the board of the bond enhancement
agreement may be paid from the proceeds of the sale of the bonds to
which the bond enhancement agreement relates or from any other
source, including the revenues of the board that are available for
the purpose of paying the bonds or that may otherwise be available
to make those payments.
(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, § 3.01, eff. Aug. 30,
1993. Amended by Acts 1997, 75th Leg., ch. 71, § 10, eff. May 9,
1997; Acts 2001, 77th Leg., ch. 1420, § 8.359, eff. Sept. 1,
2001.
§ 164.011. FUNDS. (a) In the resolution authorizing
the issuance of bonds, the board may make additional covenants with
respect to the bonds and the pledged revenues and may provide for
the flow of funds and the establishment, maintenance, and
investment of funds. The funds established may include an interest
and sinking fund, a reserve fund, and other funds that will be kept
and maintained by or under the direction of the board.
(b) The board may by resolution provide for the
establishment, maintenance, and investment of additional funds
into which the board may deposit revenues from any financial
assistance program under this chapter that are not pledged to
bonds, including any gifts, grants, or donations accepted by the
board for the support, acquisition, construction, operation,
enlargement, improvement, furnishing, or equipping of veterans
homes or veterans cemeteries.
(c) Funds established by the board under this chapter are
not to be part of the State Treasury and are not subject to
Subchapter F, Chapter 404, Government Code. Any provision of this
chapter or other law that provides for the deposit of money or
another thing of value into the funds prevails over the
requirements of Subchapter F, Chapter 404, Government Code. The
funds shall remain under the control of the board but, at the
direction of the board, may be kept and held in escrow and in trust
by the comptroller on behalf of the board and the owners of the
bonds and used only as provided by this chapter.
(d) Money in a fund shall be invested in investments
authorized as provided by a resolution or order of the board.
(e) Legal title to money in a fund is in the board unless or
until paid from the fund as provided by this chapter or the
resolution authorizing the issuance of the bonds or the
establishment of the fund.
(f) The board shall select the comptroller or one or more
commercial banks, depository trust companies, or other entities to
serve as custodian of the cash or securities of a fund and may
authorize the custodian to invest the cash in investments as
determined by the board.
(g) In managing the assets of a fund, the board may permit
the custodian of the fund's securities to lend the securities as
provided by this section and by rules adopted by the board.
(h) To be eligible to lend securities under this section, a
custodian selected under Subsection (f) 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 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.
(i) The board shall require the custodian or custodians of a
fund to administer the fund solely and strictly as provided by this
chapter and the resolution authorizing the issuance of the bonds,
and the state may not take any other action relating to the fund
except those specified in this chapter and the resolution
authorizing the issuance of the bonds or the establishment of the
fund.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 1997, 75th Leg., ch. 71, § 11, eff. May 9,
1997; Acts 1997, 75th Leg., ch. 1423, § 14.23, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 134, § 8, eff. May 20, 1999;
Acts 2001, 77th Leg., ch. 981, § 6.
§ 164.012. RESOLUTIONS. (a) The resolution
authorizing the issuance of the bonds may prohibit the further
issuance of bonds or other obligations payable from the pledged
revenues or may reserve the right to issue additional bonds to be
secured by a pledge of and payable from the revenue on a parity with
or subordinate to the lien and pledge in support of the bonds being
issued.
(b) The resolution of the board authorizing the issuance of
the bonds may include other provisions and covenants that the board
determines necessary.
(c) In a resolution authorizing the issuance of bonds, the
board may prescribe systems, methods, routines, and procedures
under which the board will function.
(d) The board may adopt and have executed any other
proceedings or instruments necessary or convenient in the issuance
of bonds.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993.
§ 164.013. INVESTMENT SECURITIES. The bonds and any
interest coupons are investment securities under Chapter 8,
Business & Commerce Code, and may be issued registrable as to
principal or as to both principal and interest or may be made
redeemable before maturity at the option of the authority or may
contain a mandatory redemption provision.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993.
§ 164.014. APPROVAL OF THE ATTORNEY GENERAL. Bonds
issued under this chapter are subject to review and approval by the
attorney general in the same manner and with the same effect as
provided by Chapter 1371, Government Code.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993. Amended by Acts 2001, 77th Leg., ch. 1420, § 8.360, eff.
Sept. 1, 2001.
§ 164.015. REFUNDING BONDS. (a) The board may issue
refunding bonds to refund all or part of its outstanding bonds
issued under this chapter, including matured but unpaid interest.
(b) The board may refund bonds in the manner provided by
general law for revenue bonds.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993.
§ 164.016. BONDS AS INVESTMENTS AND SECURITY. (a) The
bonds are legal and authorized investments for banks, savings
banks, trust companies, savings and loan companies, insurance
companies, fiduciaries, trustees, guardians, the sinking funds of
cities, towns, villages, counties, school districts, and other
political subdivisions of the state, and other public funds of the
state and its agencies.
(b) The bonds are eligible to secure deposits of public
funds of the state and cities, counties, school districts, and
other political subdivisions of the state. The bonds are lawful and
sufficient security for deposits to the extent of their par value.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993.
§ 164.017. TAX EXEMPT. Since the board is performing an
essential governmental function in the exercise of the powers
conferred on it by this chapter, the bonds issued under this
chapter, and the interest and income from the bonds, including any
profit made on the sale of bonds, and all fees, charges, gifts,
grants, revenues, receipts, and other money received or pledged to
pay or secure the payment of bonds are free from taxation and
assessments of every kind by this state and any city, county,
district, authority, or other political subdivision of this state.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993.
§ 164.018. NO PLEDGE OF STATE FAITH AND CREDIT; COVENANT
WITH OWNERS OF BONDS. (a) Bonds issued under this chapter are
special obligations of the board and are payable only from and
secured only by the revenues and assets pledged to secure payment of
the bonds under the Texas Constitution and this chapter, and the
bonds are not and do not create or constitute a pledge, gift, or
loan of the faith, credit, or taxing authority of the state.
(b) Each bond must include a statement that the faith or
credit and the taxing authority of the state are not pledged, given,
or loaned to secure payment of the principal of, or premium or
interest on the bonds.
(c) The state pledges to and agrees with the owners of bonds
issued under this chapter that the state will not limit or alter the
rights vested in the board to fulfill the terms of agreements made
with the owners of the bonds or in any way impair the rights and
remedies of those owners until the bonds, together with any premium
and interest, interest on any unpaid premium or installments of
interest, and all costs and expenses in connection with any action
or proceeding by or on behalf of those owners, are fully met and
discharged. The board may include this pledge and agreement of the
state in an agreement with the owners of the bonds.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993.
§ 164.019. ENFORCEMENT BY MANDAMUS. A writ of mandamus
and all other legal and equitable remedies are available to a party
in interest to require the board and any other party to carry out
agreements and to perform functions and duties under this chapter,
the Texas Constitution, or the board's bond resolutions or orders.
Added by Acts 1993, 73rd Leg., ch. 242, § 3.01, eff. Aug. 30,
1993.
