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Page 29 of 37 <br />k <br />Added by Acts 2009, 81st Leg., R.S., Ch. 1371 (S.B. 894), Sec. 1, <br />eff. September 1, 2009. <br />Sec. 2256.0203. AUTHORIZED INVESTMENTS: PORTS AND NAVIGATION <br />DISTRICTS. (a) In this section, "district" means a navigation <br />district organized under Section 52, Article III, or Section 59, <br />Article XVI, Texas Constitution. <br />(b) In addition to the authorized investments permitted by this <br />subchapter, a port or district may purchase, sell, and invest its <br />funds and funds under its control in negotiable certificates of <br />deposit issued by a bank that has a certificate of deposit rating of <br />at least I or the equivalent by a nationally recognized credit rating <br />agency or that is associated with a holding company having a <br />commercial paper rating of at least A-1, P-1, or the equivalent by a <br />nationally recognized credit rating agency. <br />Added by Acts 2011, 82nd Leg., R.S., Ch. 804 (H.B. 2346), Sec. 1, <br />eff. September 1, 2011. <br />Sec. 2256.0204. AUTHORIZED INVESTMENTS: INDEPENDENT SCHOOL <br />DISTRICTS. (a) In this section, "corporate bond" means a senior <br />secured debt obligation issued by a domestic business entity and <br />rated not lower than "AA-" or the equivalent by a nationally <br />recognized investment rating firm. The term does not include a debt <br />obligation that: <br />(1) on conversion, would result in the holder becoming a <br />stockholder or shareholder in the entity, or any affiliate or <br />subsidiary of the entity, that issued the debt obligation; or <br />(2) is an unsecured debt obligation. <br />(b) This section applies only to an independent school district <br />that qualifies as an issuer as defined by Section 1371.001. <br />(c) In addition to authorized investments permitted by this <br />subchapter, an independent school district subject to this section <br />may purchase, sell, and invest its funds and funds under its control <br />in corporate bonds that, at the time of purchase, are rated by a <br />nationally recognized investment rating firm "AA-" or the equivalent <br />4/18/2018 <br />