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investment policy of the local government and containing at least 10 hours of instruction relating to the treasurer's or
<br />officer's responsibilities under this subchapter within 12 months after taking office or assuming duties; and
<br />(2) except as provided by Subsections (b)and (e), attend an investment training session not less than
<br />once in atwo-year period and receive not less than 1 o hours of instruction relating to investment responsibilities under
<br />this subchapter from an independent source approved by the governing body of the local government or a designated
<br />investment committee advising the investment officer as provided for in the investment policy of the local government.
<br />(b) An investing entity created under authority of Section 52(b), Article III, or Section 59, Article XVI, Texas
<br />Constitution, that has contracted with an investment management firm under Section 2256.003 (b)and has fewer than five
<br />full-time employees or an investing entity that has contracted with another investing entity to invest the entity's funds may
<br />satisfy the training requirement provided by Subsection (a)(2) by having an officer of the governing body attend four
<br />hours of appropriate instruction in a two-year period. The treasurer or chief financial officer of an investing entity
<br />created under authority of Section 52(b), Article III, or Section 59, Article XVI, Texas Constitution, and that has fewer
<br />than five full-time employees is not required to attend training required by this section unless the person is also the
<br />investment officer of the entity.
<br />(c) Training under this section must include education in investment controls, security risks, strategy risks,
<br />market risks, diversification of investment portfolio, and compliance with this chapter.
<br />(d) Not later than December 31 each year, each individual, association, business, organization, governmental
<br />entity, or other person that provides training under this section shall report to the comptroller a list of the governmental
<br />entities for which the person provided required training under this section during that calendar year. An individual's
<br />reporting requirements under this subsection are satisfied by a report of the individual's employer or the sponsoring or
<br />organizing entity of a training program or seminar.
<br />(e) This section does not apply to a district governed by Chapter 36 or 49, Water Code.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch.1421, Sec. 5, eff. Sept.
<br />1,1997; Acts 1999, 76th Leg., ch. 1454, Sec. 6, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 69, Sec. 4, eff. May 14,
<br />2001.
<br />Sec. 2256.009. AUTHORIZED INVESTMENTS: OBLIGATIONS OF, OR GUARANTEED BY
<br />GOVERNMENTAL ENTITIES. (a) Except as provided by Subsection (b), the following are authorized investments
<br />under this subchapter:
<br />(1) obligations, including letters of credit, of the United States or its agencies and instrumentalities;
<br />(2) direct obligations of this state or its agencies and instrumentalities;
<br />(3) collateralized mortgage obligations directly issued by a federal agency or instrumentality ofthe
<br />United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States;
<br />(4) other obligations, the principal and interest of which are unconditionally guaranteed or insured by,
<br />or backed by the full faith and credit of, this state or the United States or their respective agencies and instrumentalities;
<br />(5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as
<br />to investment quality by a nationally recognized investment rating firm not less than A or its equivalent; and
<br />(6) bonds issued, assumed, or guaranteed by the State of Israel.
<br />(b) The following are not authorized investments under this section:
<br />(1) obligations whose payment represents the coupon payments on the outstanding principal balance of
<br />the underlying mortgage-backed security collateral and pays no principal;
<br />(2) obligations whose payment represents the principal stream of cash flow from the underlying
<br />mortgage-backed security collateral and bears no interest;
<br />City of San Marcos Investment Policy Page 23
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