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(G) the custodian bank that is safekeeping the assets of the pool;
<br />(H) a listing of daily transaction activity of the entity participating in the pool;
<br />(I) the yield and expense ratio of the pool;
<br />(J) the portfolio managers of the pool; and
<br />(K) any changes or addenda to the offering circular.
<br />(d) An entity by contract may delegate to an investment pool the authority to hold legal title as custodian of
<br />investments purchased with its local funds.
<br />(e) In this section, "yield" shall be calculated in accordance with regulations governing the registration ofopen-
<br />endmanagement investment companies under the Investment Company Act of 1940, as promulgated from time to time by
<br />the federal Securities and Exchange Commission.
<br />(f) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds
<br />investment pool created to function as a money market mutual fund must mark its portfolio to market daily, and, to the
<br />extent reasonably possible, stabilize at a $1 net asset value. If the ratio of the market value of the portfolio divided by the
<br />book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as necessary to
<br />maintain the ratio between 0.995 and 1.005.
<br />(g) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public
<br />funds investment pool must have an advisory board composed:
<br />(1) equally of participants in the pool and other persons who do not have a business relationship with
<br />the pool and are qualified to advise the pool, for a public funds investment pool created under Chapter 791 and managed
<br />by a state agency; or
<br />(2) of participants in the pool and other persons who do not have a business relationship with the pool
<br />and are qualified to advise the pool, for other investment pools.
<br />(h) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an
<br />investment pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one
<br />nationally recognized rating service.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch.1421, Sec. 9, eff. Sept.
<br />1,1997.
<br />Sec. 2256.017. EXISTING INVESTMENTS. An entity is not required to liquidate investments that were
<br />authorized investments at the time of purchase.
<br />Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.46(a), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept.
<br />1,1995. Amended by Acts 1997, 75th Leg., ch. 1421, Sec. 10, eff. Sept. 1,1997.
<br />Sec. 2256.019. RATING OF CERTAIN INVESTMENT POOLS. A public funds investment pool must be
<br />continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating
<br />service or no lower than investment grade by at least one nationally recognized rating service with a weighted average
<br />maturity no greater than 90 days.
<br />Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,1995. Amended by Acts 1997, 75th Leg., ch.1421, Sec. l 1,
<br />eff. Sept. 1,1997.
<br />Sec. 2256.020. AUTHORIZED INVESTMENTS: INSTITUTIONS OF HIGHER EDUCATION. In addition
<br />to the authorized investments permitted by this subchapter, an institution of higher education may purchase, sell, and
<br />invest its funds and funds under its control in the following:
<br />(1) cash management and fixed income funds sponsored by organizations exempt from federal income
<br />taxation under Section 501(f), Internal Revenue Code of 1986 (26 U.S.C. Section 501(f));
<br />City of San Marcos Investment Policy Page 28
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