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<br />[Sections 2257.065 to 2257.080 reserved for expansion] <br /> <br />SUBCHAPTER E. EXEMPT INSTITUTIONS <br /> <br />2257.081 Definition <br />In this subchapter, "exempt institution" means: <br />(1) a public retirement system, as defined by Section 802.001; or <br />(2) the permanent school fund, as defined by Section 15.01, Education Code. <br /> <br />2257.082 Funds of Exempt Institution <br />An exempt institution is not required to have its funds fully insured or collateralized at all times if: <br />(1) the funds are held by: <br />(A) a custodian of the institution's assets under a trust agreement; or <br />(B) a person in connection with a transaction related to an investment; and <br />(2) the governing body of the institution, in exercising its fiduciary responsibility, <br />determines that the institution is adequately protected by using a trust agreement, special <br />deposit, surety bond, substantial deposit insurance, or other method an exempt institution <br />commonly uses to protect itself from liability. <br /> <br />2257.083 Investment; Selection of Depository <br />This chapter does not: <br />(1) prohibit an exempt institution from prudently investing in a certificate of deposit; or <br />(2) restrict the selection of a depository by the governing body of an exempt institution in <br />accordance with its fiduciary duty. <br /> <br />Effective Date <br />This chapter took effect September 1, 1989 (revised 1993 and 1997). <br /> <br />City of San Marcos Investment Policy <br /> <br />Page 39 <br />