Tex. Education Code § 12.107
This is the official text of Tex. Education Code § 12.107, part of Texas’s Education Code — governs public schools and universities in Texas.
Not legal advice. This page reproduces the official text of a government statute for reference only. Laws change, and how a statute applies depends on your specific facts. For advice about your situation, consult a licensed attorney in your state.
§ 12.107. STATUS AND USE OF FUNDS.
Official statutory text
(a) Funds received under Section 12.106 after September 1, 2001, by a charter holder:
(1) are considered to be public funds for all purposes under state law;
(2) are held in trust by the charter holder for the benefit of the students of the open-enrollment charter school;
(3) may be used only for a purpose for which a school may use local funds under Section 45.105(c);
(4) pending their use, must be deposited into a bank, as defined by Section 45.201, with which the charter holder has entered into a depository contract; and
(5) may not:
(A) be pledged or used to secure loans or bonds for any other organization, including a non-charter operation or out-of-state operation conducted by the charter holder or a related party, as defined by commissioner rule adopted under Section 12.1166; or
(B) be used to support an operation or activity not related to the educational activities of the charter holder.
(b) A charter holder shall deliver to the agency a copy of the depository contract between the charter holder and any bank into which state funds are deposited.
(1) are considered to be public funds for all purposes under state law;
(2) are held in trust by the charter holder for the benefit of the students of the open-enrollment charter school;
(3) may be used only for a purpose for which a school may use local funds under Section 45.105(c);
(4) pending their use, must be deposited into a bank, as defined by Section 45.201, with which the charter holder has entered into a depository contract; and
(5) may not:
(A) be pledged or used to secure loans or bonds for any other organization, including a non-charter operation or out-of-state operation conducted by the charter holder or a related party, as defined by commissioner rule adopted under Section 12.1166; or
(B) be used to support an operation or activity not related to the educational activities of the charter holder.
(b) A charter holder shall deliver to the agency a copy of the depository contract between the charter holder and any bank into which state funds are deposited.
Status: in_force · Read it on the official government site
Need a lawyer in Texas?
Find a Texas lawyer
About this page: Statute text is reproduced from official government publishers via the
Open US Law dataset
(Vaquill AI, snapshot v2026.08, CC BY 4.0). Primary legislative text like this is public domain under the government-edicts doctrine
(Georgia v. Public.Resource.Org, 2020). We link every section back to its official source so you can verify it independently.