TX Govt Code § 404.052 (2021)
2021 Texas Statutes|Government Code|Title 4 - Executive Branch|Subtitle A - Executive Officers|Chapter 404 - State Treasury Operations of Comptroller|Subchapter E. General Duties|Section 404.052. Obligations of Municipalities, Districts, and Political Subdivisions

Sec. 404.052.  OBLIGATIONS OF MUNICIPALITIES, DISTRICTS, AND POLITICAL SUBDIVISIONS.  (a)  A bond, warrant, or other evidence of indebtedness issued by a municipality, district, or political subdivision of this state and any interest, at the discretion of the municipality, district, or political subdivision may be payable at the office of the comptroller. The comptroller serves as ex officio treasurer and fiscal agent of the municipality, district, or political subdivision for the purposes of receiving funds for the payment of the obligation and interest, making payment of the obligation and interest, and for all other purposes designated by this chapter or necessary or incidental to the service.(b)  The comptroller shall deposit money received by the comptroller under this section and shall keep a separate account for each municipality, district, or political subdivision.  The payment of interest and principal due on an obligation of the municipality, district, or political subdivision must be on deposit with the comptroller not later than five business days before the date of maturity.  Any charges incurred for late receipt of funds shall be assessed to the municipality, district, or political subdivision.  On receipt of those amounts by the comptroller, the comptroller shall issue a warrant for the payment of amounts due.(c)  On return of the obligation, the treasurer of the municipality, district, or political subdivision shall record the payment and cancellation.(d)  The comptroller shall collect for the use of the state from the municipality, district, or political subdivision a fee in an amount established by rule of the comptroller that is sufficient to pay the comptroller's cost of administration.  The treasurer of the municipality, district, or political subdivision, at the time of the remittance for the payment of the maturing obligation or interest, shall remit the fee to the comptroller as ex officio treasurer of the municipality, district, or political subdivision.  On receipt of the fee, the comptroller shall deposit it to the appropriate fund.  The amount of the fees earned, or as much as necessary, is reserved to the comptroller to be used in the administration of this chapter.  Any balance remaining at the end of a fiscal year is available for use in the next fiscal year.(e)  It is the general intent of this section to provide an inexpensive and feasible means for the payment of bonds and interest coupons issued by municipalities, districts, and political subdivisions in the state at the office of the comptroller, and this section shall be broadly construed to carry out that intent.  An official or a municipality, district, or political subdivision concerned with the administration of this section shall perform the acts and duties necessary or appropriate to facilitate and expedite the operation of this section to the end that bonds and interest may be promptly paid and the payment clearly evidenced and accounted for.(f)  The comptroller shall cancel and return to the municipality, district, or political subdivision depositing funds for the payment of interest coupons or the retirement of bonds the coupons and bonds that have matured or been retired by purchase, together with a statement of the account of the municipality, district, or subdivision showing the amounts received and placed to its credit, service charges, and amount of coupons or bonds retired.  At the request of the municipality, district, or political subdivision, the comptroller shall remit to the municipality, district, or subdivision any balance remaining in custody of the comptroller for more than two years for which bonds or coupons have not been presented for payment.  The municipality, district, or political subdivision shall pay these coupons or bonds when presented.  A municipality, district, or political subdivision is entitled at any reasonable time to a statement of its account with the comptroller.|Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987.  Amended by Acts 1995, 74th Leg., ch. 426, Sec. 15, eff. June 9, 1995;  Acts 1997, 75th Leg., ch. 1423, Sec. 7.50, eff. Sept. 1, 1997.|