Texas Education Code - EDUC § 43.019. Accounting Treatment of Certain Exchanges

(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.