Section 12.107 - Status and Use of Funds(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.Amended by Acts 2019, Texas Acts of the 86th Leg.- Regular Session, ch. 631,Sec. 4, eff. 6/10/2019.Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 7, eff. 9/1/2001.Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. 5/30/1995.