Sec. 43.019. ACCOUNTING TREATMENT OF CERTAIN EXCHANGES. The State Board of Education may account for the exchange of permanent school fund securities in a closely related sale and purchase transaction in a manner in which the gain or loss on the sale is deferred as an adjustment to the book value of the security purchased, if: (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.
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