SECTION 176.4. Administration of the State Veterans Home Fund

(a) The proceeds from each bond sale shall be part of the State Veterans Home Fund and shall first be used for the following purposes:

(1) to satisfy the reserve requirements of the particular covenants associated with the sale; and

(2) to set up the initial debt repayment associated with each sale.

(b) After the requirements of subsection (a) of this section have been satisfied, the Board shall monitor the cash flow requirements of the program and shall administer the fund to:

(1) meet all bond repayment requirements; and

(2) make money available as needed to construct, equip and/or maintain state veterans homes as provided by the Natural Resources Code, Chapter 164.00 et seq, and this chapter.

(c) The Board may use money in the fund attributable to bonds issued and sold to pay:

(1) expenses incidental and necessary to the sale and delivery of the bonds, including, but not limited to, the following:

(A) fees for legal and financial advice;

(B) the expense of publishing notice of sale;

(C) the expense of printing the bonds;

(D) the expense of delivering the bonds, including the costs of travel, lodging, and meals of officers or employees of the Board, the state comptroller, and the attorney general, that are necessary in the opinion of the Board to effectuate the delivery of bonds;

(E) remuneration to any agent employed by the Board to pay the principal and interest on the bonds; and

(F) any other expenses deemed by the Board to be reasonable and necessary;

(2) capital expenditures by the operator which involve items not described in the Board's contract with the operator and which are not part of the operator's standard services. These additional expenses must not be in conflict with any existing covenants or any Board resolutions affecting the sale of bonds or administration of the fund. All such additional expenditures must also be authorized and requested by a resolution of the Board.

(d) Any money in the fund not immediately needed for the purposes described in subsections (b) and (c) of this section nor immediately committed to paying principal of and interest on the bonds, nor the payment of expenses, may be invested in bonds or obligations as determined by the Board.

(e) The Board may, by resolution, make provisions for the administration of the Fund.

Source Note: The provisions of this §176.4 adopted to be effective November 24, 1997, 22 TexReg 11092.