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Page 8 of 37 <br />(k) A written copy of the investment policy shall be presented <br />to any business organization offering to engage in an investment <br />transaction with an investing entity. For purposes of this <br />subsection and Subsection (1), "business organization" means an <br />investment pool or investment management firm under contract with an <br />investing entity to invest or manage the entity's investment <br />portfolio that has accepted authority granted by the entity under the <br />contract to exercise investment discretion in regard to the investing <br />entity's funds. Nothing in this subsection relieves the investing <br />entity of the responsibility for monitoring the investments made by <br />the investing entity to determine that they are in compliance with <br />the investment policy. The qualified representative of the business <br />organization offering to engage in an investment transaction with an <br />investing entity shall execute a written instrument in a form <br />acceptable to the investing entity and the business organization <br />substantially to the effect that the business organization has: <br />(1) received and reviewed the investment policy of the <br />entity; and <br />(2) acknowledged that the business organization has <br />implemented reasonable procedures and controls in an effort to <br />preclude investment transactions conducted between the entity and the <br />organization that are not authorized by the entity's investment <br />policy, except to the extent that this authorization: <br />(A) is dependent on an analysis of the makeup of the <br />entity's entire portfolio; <br />(B) requires an interpretation of subjective <br />investment standards; or <br />(C) relates to investment transactions of the entity <br />that are not made through accounts or other contractual arrangements <br />over which the business organization has accepted discretionary <br />investment authority. <br />(1) The investment officer of an entity may not acquire or <br />otherwise obtain any authorized investment described in the <br />investment policy of the investing entity from a business <br />organization that has not delivered to the entity the instrument <br />required by Subsection (k). <br />(m) An investing entity other than a state agency, in <br />conjunction with its annual financial audit, shall perform a <br />4/18/2018 <br />