Summary: Hico Indpt Sch Dist, TX; Tax Secured, School State Program
- ID: 1785358
- August 2002
- Standard & Poors
The 'AAA' rating on Hico Independent School District, Texas' unlimited-tax school building bonds reflects the credit enhancement provided by the Texas Permanent School Fund. The permanent fund, under Article VII, Section 5 of the Texas Constitution, permits the use of its endowment to ensure bondholders of timely debt service payments. In the event of a potential default, the school district must notify the commissioner no later than five days before the maturity date of the guaranteed debt. The commissioner will then pay debt service to the paying agent and direct the state to later withhold district state aid to repay the permanent fund. This guarantee program reflects the fund's strong asset quality and the legal provisions limiting the maximum amount...
Companies mentioned in this report are: Hico Indpt Sch Dist,Texas Perm Sch Fd
Action: New Rating
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