November 22, 2024

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Texas school bond guarantee program’s available capacity shrinks

1 min read
Texas school bond guarantee program's available capacity shrinks

A top-rated Texas program that guarantees public school bonds may be nearing a shutdown after its projected available capacity fell to just $653 million at the end of October. 

in December 2009 lifted the limit.

In the event of a default, which has never happened in the history of the program, bondholders are paid by the PSF and that money is then taken out of a district’s next state aid payment.