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<br />APPENDIX D <br /> <br />COLLATERAL FOR PUBLIC FUNDS <br /> <br />Chapter 2257, Texas Government Code <br /> <br />Subchapter A. General Provisions <br />Effective As Of September 1, 2003 <br /> <br />~ 2257.001. Short Title <br /> <br />This chapter may be cited as the Public Funds Collateral Act. <br />Added by Acts 1993, 73rd Leg, ch. 268, ~ 1, elI. Sept. 1, 1993,Acts 2003, 78th Leg, effSept 1,2003. <br /> <br />92257.002. Definitions In this chapter: <br /> <br />(1) "Bank holding compani' has the meaning assigned by Section 31.002(a). Finance Code. <br />(2) "Control" has the meaning assigned by Section 31.002(a), Finance Code. <br />(3) "Depm:;t of public funds" means public funds of a public entity that: <br />(A) the comptroller does not manage under Chapter 404; and <br />(B) are held as a demand or time deposit by a depository institution expressly authorized by <br />law to accept a public entity's demand or time deposit. <br />(4) "Eligible security" means: <br />(A) a surety bond; <br />(B) an investment security; <br />(C) an ownership or beneficial interest in an investment security, other than an option <br />contract to purchase or sell an investment security; <br />(0) a fixed-rate collateralized mortgage obligation that has an expected weighted average life <br />of 10 years or less and does not constitute a high-risk mortgage security; or <br />(E) a floating-rate collateralized mortgage obligation that does not constitute a high-risk <br />mortgage security. <br />(5) "Investment security" means: <br />(A) an obligation that in the opinion oftheattomey general of the United States is a general <br />obligation of the United States and backed by its full faith and credit; <br />(B) a general or special obligation issued by a public agency that is payable from taxes, <br />revenues, or a combination of taxes and revenues; or <br />(C) a security in which a public entity may invest under Subchapter A, Chapter 2256. <br />(6) "Permitted institution" means: <br />(A) a Federal Reserve Bank; <br />(B) a clearing corporation, as defined by Section 8.102, Business & Commerce Code; <br />(C) a bank eligible to be a custodian under Section 2257.041; or <br />(0) a state or nationally chartered bank that is controlled by a bank holding company that <br />controls a bank eligible to be a custodian under Section 2257.041. <br /> <br />City of San Marcos Investment Policy <br /> <br />Page 35 <br />