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Page 10 of 37 <br />person of prudence, discretion, and intelligence would exercise in <br />the management of the person's own affairs, not for speculation, but <br />for investment, considering the probable safety of capital and the <br />probable income to be derived. Investment of funds shall be governed <br />by the following investment objectives, in order of priority: <br />(1) preservation and safety of principal; <br />(2) liquidity; and <br />(3) yield. <br />(b) In determining whether an investment officer has exercised <br />prudence with respect to an investment decision, the determination <br />shall be made taking into consideration: <br />(1) the investment of all funds, or funds under the <br />entity's control, over which the officer had responsibility rather <br />than a consideration as to the prudence of a single investment; and <br />(2) whether the investment decision was consistent with <br />the written investment policy of the entity. <br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. <br />Sec. 2256.007. INVESTMENT TRAINING; STATE AGENCY BOARD MEMBERS <br />AND OFFICERS. (a) Each member of the governing board of a state <br />agency and its investment officer shall attend at least one training <br />session relating to the person's responsibilities under this chapter <br />within six months after taking office or assuming duties. <br />(b) The Texas Higher Education Coordinating Board shall provide <br />the training under this section. <br />(c) Training under this section must include education in <br />investment controls, security risks, strategy risks, market risks, <br />diversification of investment portfolio, and compliance with this <br />chapter. <br />(d) An investment officer shall attend a training session not <br />less than once each state fiscal biennium and may receive training <br />from any independent source approved by the governing body of the <br />state agency. The investment officer shall prepare a report on this <br />subchapter and deliver the report to the governing body of the state <br />agency not later than the 180th day after the last day of each <br />regular session of the legislature. <br />4/18/2018 <br />