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(9) "Pooled fund group" means an internally created fund of an investing entity in which one or more
<br />institutional accounts of the investing entity are invested.
<br />(10) "Qualified representative" means a person who holds a position with a business organization, who
<br />is authorized to act on behalf of the business organization, and who is one of the following:
<br />(A) for a business organization doing business that is regulated by or registered with a
<br />securities commission, a person who is registered under the rules of the National Association of Securities Dealers;
<br />(B) for a state or federal bank, a savings bank, or a state or federal credit union, a member of
<br />the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of
<br />and bind the banking institution;
<br />(C) for an investment pool, the person authorized by the elected official or board with
<br />authority to administer the activities of the investment pool to sign the written instrument on behalf of the investment
<br />pool; or
<br />(D) for an investment management firm registered under the Investment Advisers Act of 1940
<br />(15 U.S.C. Section 80b-1 et seq.) or, if not subject to registration under that Act, registered with the State Securities
<br />Board, a person who is an officer or principal of the investment management firm.
<br />(11) "School district" means a public school district.
<br />(12) "Separately invested asset" means an account or fund of a state agency or local government that is
<br />not invested in a pooled fund group.
<br />(13) "State agency" means an office, department, commission, board, or other agency that is part of
<br />any branch of state government, an institution of higher education, and any nonprofit corporation acting on behalf of any
<br />of those entities.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch.1421, Sec. 1, eff. Sept.
<br />1,1997; Acts 1999, 76th Leg., ch. 1454, Sec. 1, eff. Sept. 1,1999.
<br />Sec. 2256.003. AUTHORITY TO INVEST FUNDS; ENTITIES SUBJECT TO THIS CHAPTER. (a) Each
<br />governing body of the following entities may purchase, sell, and invest its funds and funds under its control in
<br />investments authorized under this subchapter in compliance with investment policies approved by the governing body
<br />and according to the standard of care prescribed by Section 2256.006:
<br />(1) a local government;
<br />(2) a state agency;
<br />(3) a nonprofit corporation acting on behalf of a local government or a state agency; or
<br />(4) an investment pool acting on behalf of two or more local governments, state agencies, or a
<br />combination of those entities.
<br />(b) In the exercise of its powers under Subsection (a), the governing body of an investing entity may contract
<br />with an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et
<br />seq.) or with the State Securities Board to provide for the investment and management of its public funds or other funds
<br />under its control. A contract made under authority of this subsection may not be for a term longer than two years. A
<br />renewal or extension of the contract must be made by the governing body of the investing entity by order, ordinance, or
<br />resolution.
<br />(c) This chapter does not prohibit an investing entity or investment officer from using the entity's employees or
<br />the services of a contractor of the entity to aid the investment officer in the execution of the officer's duties under this
<br />chapter.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch.1454, Sec. 2, eff. Sept.
<br />1,1999.
<br />Sec. 2256.004. APPLICABILITY. (a) This subchapter does not apply to:
<br />(1) a public retirement system as defined by Section 802.00 l;
<br />(2) state funds invested as authorized by Section 404.024;
<br />(3) an institution of higher education having total endowments of at least $95 million in book value on
<br />May 1,1995;
<br />(4) funds invested by the Veterans' Land Board as authorized by Chapter 161,162, or 164, Natural
<br />City of San Marcos Investment Policy Page 19
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