Tex. Water Code § 51.039 · Subchapter B. CREATION OF DISTRICT; CONVERSION OF DISTRICT
BONDS OF MUNICIPAL DISTRICTS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A district operating under Section 51.038 of this code may issue bonds which bear the legend "municipal bond."
(b) Bonds issued in compliance with this section and with Section 51.038 of this code shall be eligible for investment of the funds of:
(1) state banks, trust funds, and savings banks;
(2) insurance companies, for the purpose of holding the bonds as legal reserves against liability under their contracts for insurance or for investment of an accumulated surplus;
(3) counties, cities, towns, and other political bodies, for the purpose of investing the accumulated sinking fund money of those bodies;
(4) the State Board of Education and the regents of The University of Texas System; and
(5) trustees, receivers, administrators, and guardians administering funds under orders of a court.
(c) Municipal bonds issued under this section, when in the lawful possession of any person, shall be lawful reserves, where reserves are required by law.
(d) The bonds are eligible for deposit with the banking and insurance departments of Texas in all cases where deposit, pledge, or security is required by law.
(e) The bonds shall be lawful security for any bank designated as an official depository for a political body under the laws of Texas.
Notes and commentary — not statutory text
History
Acts 1971, 62nd Leg., p. 110, ch. 58, Sec. 1, eff. Aug. 30, 1971.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/WA/htm/WA.51.htm
- Text hash
- sha256 74e00a385a17ce6cca2efec649c65a88367e6806ef889c6b81553769cca1d328
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 3 provisions
Provisions in this library whose text cites Tex. Water Code § 51.039. Each shows the citation as that text prints it.
Insurance Code
- Tex. Ins. Code § 424.074OTHER SPECIFICALLY AUTHORIZED INVESTMENTS.Printed as Sections 51.038 and 51.039, Water Code
- Tex. Ins. Code § 425.212AUTHORIZED INVESTMENTS FOR ALL FUNDS: SECURITIES OR INVESTMENTS AUTHORIZED OR DESCRIBED BY SPECIFIC STATUTORY PROVISION.Printed as Section 51.039 or 60.104, Water Code
- Tex. Ins. Code § 425.219AUTHORIZED INVESTMENTS FOR POLICY RESERVES AND SURPLUS: BONDS OF CERTAIN WATER CONTROL AND IMPROVEMENT DISTRICTS.Printed as Section 51.039, Water Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.