Sec. 43.019.  ACCOUNTING TREATMENT OF CERTAIN EXCHANGES.  The State Board of Education may account for the exchange of permanent school fund securities in a closely related sale and purchase transaction in a manner in which the gain or loss on the sale is deferred as an adjustment to the book value of the security purchased, if:
(1)  the security sold and the security purchased have a fixed maturity value;
(2)  the board is authorized by law to invest the permanent school fund in the security purchased;
(3)  the sale is made in clear contemplation of reinvesting substantially all of the proceeds;
(4)  substantially all of the proceeds are reinvested;
(5)  the transaction is completed within a reasonable time after the sale, not to exceed 30 business days;  and
(6)  the transaction results in an improvement in effective income yield, taking into consideration the deferral of any gain or loss on the sale.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.