§
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" 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 for financial assistance under this
chapter 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; or
(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;
(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; 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 in
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 the state at
the time of enlistment, induction,
commissioning, appointment, or drafting.
(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) Notwithstanding Subdivision (6) 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.
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.
Amended by Acts 2001, 77th Leg., ch. 981, § 2.
§
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.
Amended by 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.
Amended by 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.
Amended by 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 Bond
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
under Article III, Sections 49-b, 49-b-1, and
49-b-2, of the Texas Constitution or to make
payments with respect to principal or interest
under a bond enhancement agreement with respect
to the general obligation bonds if the bonds are
issued to provide funds to purchase land and
sell land to veterans or to make home mortgage
loans to veterans;
(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 if the bonds are issued to
provide funds to purchase land and sell land to
veterans or to make home mortgage loans to
veterans;
(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.
§
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.
Amended by 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.
Amended by 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.
