CCA(LEGAL) -

Bonds and Bond Taxes

Use of Bond Proceeds for Utilities

Instructional Facility Allotment

Existing Debt Allotment

Capital Appreciation Bonds

Limitation on Issuance

The bonds have a scheduled maturity date that is not later than 20 years after the date of issuance and extended only in accordance with law;

The board has received a written estimate of the cost of the issuance, including:

The amount of principal and interest to be paid until maturity;

The amount of fees to be paid to outside vendors, including vendors who sell products to be financed by the bond issuance;

The amount of fees to be paid to each financing team member; and

The projected tax impact of the bonds and the assumptions on which the calculation of the projected tax impact is based;

The board has determined in writing whether any personal or financial relationship exists between the members of the board and any financial adviser, bond counsel, bond underwriter, or other professional associated with the bond issuance and reported any relationship to the Ethics Commission; and

The board posts prominently on the district's Internet website and enters in the minutes of a meeting information about the bonds required by law.

Limitation on Use of Proceeds

Items more regularly considered maintenance items, including replacement HVAC units, upgraded plumbing, or similar items; or

Transportation-related items, including buses.

Total Amount of Capital Appreciation Bonds

Gov't Code 1201.0245

Bond Elections

Call for Election

Election Order

The proposition language that will appear on the ballot;

The purpose for which the bonds are to be authorized;

The principal amount of the bonds to be authorized;

That taxes sufficient to pay the annual principal of and interest on the bonds may be imposed;

The estimated tax rate if the bonds are authorized or the maximum interest rate of the bonds or any series of the bonds, based on the market conditions at the time of the election order;

The maximum maturity date of the bonds to be authorized or that the bonds may be issued to mature over a specified number of years not to exceed 40;

The aggregate amount of the outstanding principal of the district's debt obligations as of the beginning of the fiscal year in which the election is ordered;

The aggregate amount of the outstanding interest on the district's debt obligations as of the beginning of the district's fiscal year in which the election is ordered; and

The district's ad valorem debt service tax rate at the time the election is ordered, expressed as an amount per $100 valuation of taxable property.

Election Code 3.009(b)

Propositions

Sufficient, without limits as to rate or amount, to pay the principal of and interest on said bonds; or

Sufficient to pay the principal of and interest on said bonds, provided that the annual aggregate bond taxes in a district shall never exceed the rate stated in the proposition.

Education Code 45.003(b)

The total principal amount of the bonds to be authorized, if approved; and

A general description of the purposes for which the bonds are to be authorized, if approved.

Election Code 52.072(e)

Posting

On election day and during early voting by personal appearance, in a prominent location at each polling place;

Not later than the 21st day before the election in three public places in the boundaries of the district; and

During the 21 days before the election, on the district's Internet website, prominently and together with the notice of the election and the contents of the proposition, if the district maintains an Internet website.

Election Code 4.003(f)

Notice of Election

Posting

Publication

Electioneering

Political Advertising

The officer or employee knows is false; and

Is sufficiently substantial and important as to be reasonably likely to influence a voter to vote for or against the measure.

Newsletters

50 Cent Test for New Debt

Future Taxable Value

Education Code 45.0031

Refunding Bonds Authority

Instructional Facilities Allotment for Refunding Bonds

Are issued to refund bonds eligible under Section 46.003;

Do not have a final maturity date later than the final maturity date of the bonds being refunded;

May not be called for redemption earlier than the earliest call date of all bonds being refunded; and

Result in a present value savings as defined in Education Code 46.007.

Education Code 46.007

Authorized Unissued Bonds

Guarantee of Bonds by the Permanent School Fund

The name of a district and the principal amount of the bonds to be issued;

The name and address of the financial institution designated by a district as its agent for payment of principal and interest for guaranteed bonds; and

The maturity schedule, estimated interest rate, and date of the bonds.

Education Code 45.051–.052, .054–.055

Credit Enhancement Program

As required under the Texas Constitution; or

For assistance in paying debt service.

Education Code 45.252

Eligibility

Bonds must be issued in the manner provided by Education Code 45.054;

Payments of all of the principal of the bonds must be scheduled during the first six months of the state fiscal year;

The district's lowest credit rating from any credit rating agency may not be the same as or higher than that of the School District Bond Enhancement Program;

The bonded debt for which the credit enhancement is sought must be structured so that no single annual debt service payment exceeds two times the quotient produced by dividing the total proposed annual debt service, as defined in 19 Administrative Code 61.1038(b)(10), for the term of the bonds by the number of years in the amortization schedule; and

The district must agree in its application that the total annual debt service on bonds approved for the credit enhancement will be paid on or before August 15 of each state fiscal year.

Education Code 45.254; 19 TAC 61.1038(f)

Application

Include the information required by Education Code 45.055(b) and 19 Administrative Code 61.1038; and

Be accompanied by a fee set by the State Board of Education.

Education Code 45.255; 19 TAC 61.1038(d), (e)(1), (8), (10)

Federal Securities Law

Disclosure Obligations for Bond and Other Debt Offerings

Liability Under Federal Securities Law

Continuing Disclosure After Issuing Bonds

Note: In preparing an official statement, a district may reasonably rely on the advice of outside professionals who are also subject to the antifraud provisions, but a district is primarily liable for the content of its official statement and other disclosures. SEC Exchange Act Release No. 36761 (Jan. 24, 1996)

Van Alstyne ISD

CCA(LEGAL)-P

UPDATE 103

DATE ISSUED: 9/23/2015