THE PUF FUND EXPLAINED
P U F L A N D S M A N A G E R
2.1 million acres that produce two income streams: mineral income, which comes mainly from oil and gas bonuses, rentals and royalties, and surface income such as income from grazing leases, easements, wind power generation and a commercial vineyard and winery.
The constitution permits the UT System and Texas A&M University System to each sell a limited amount of bonds (a type of borrowing) to fund construction and other capital expenses at system institutions. The bonds are secured by the AUF, which gives the systems the lowest interest rates available, saving the state money. Bond proceeds may not be used for operational expenses.
PUF income and investment assets are managed by UTIMCO, a nonprot corporation operating under the authority of the UT System Board of Regents.
The PUF Fund Explained
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