Unexpended Balance

Sec. 1505.080. UNEXPENDED BALANCE. (a) Any proceeds of the sale of bonds issued under this subchapter that are unspent after completion of the project for which the bonds were issued: (1) shall be deposited to the credit of the bond and interest redemption fund for the bonds; and (2) may be used only to: (A) pay the principal of the bonds; or (B) purchase outstanding bonds of the issue from which the proceeds were derived. (b) A bond may not be purchased under Subsection (a)(2)(B) for a price that exceeds, excluding accrued interest, the face amount of the bond. (c) A bond purchased under Subsection (a)(2)(B) must be canceled and may not be reissued. Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.