(a) The board shall have a competent engineer make an inspection and valuation of
the physical property of the district which is subject to decay, obsolescence, injury,
or damage by sudden, accidental, or unusual causes, and based on the inspection and
valuation, the engineer shall determine as nearly as he can a sufficient amount to
be set aside annually to pay for replacement of each item of physical property at
the end of its economic life or for the restoration or replacement of any item of
physical property if it is lost, injured, or damaged.
(b) The board shall set aside a portion of the maintenance fund as it is collected
equal to the amount determined under Subsection (a) of this section and shall place
this money in the amortization and emergency fund. No part of this fund may be spent except to replace amortized property or to replace
or restore lost, injured, or damaged property.
(c) Any amount in the amortization and emergency fund which is not spent for the purposes
for which the fund was created may be invested in bonds or interest-bearing securities
of the United States.
(d) The board is not required to create an amortization and emergency fund, but if
the board does create the fund, it shall be kept up and maintained.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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