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APPENDIX D <br /> <br />PUBLIC FUNDS COLLATERAL ACT <br />(Texas Government Code Section 2257) <br />(Revised ]997) <br /> <br />SUBCHAPTER A. GENERAL PROVISIONS <br /> <br />2257.001 Short Title <br />This chapter may be cited as the Public Funds Collateral Act. <br /> <br />2257.002 Definitions <br />In this chapter: <br /> (1) "Bank holding company" has the meaning assigned by Section 1.002(a), Texas Banking <br /> Act. <br /> (2) Repealed by Acts ]997 75th leg, ch 891, Sec 3.22(4) eff Sept ] 1997 <br /> (3) "Control" has the meaning assigned by Section 1.002(a), Texas Banking Act. <br /> (4) "Deposit of public funds" means public funds of a public entity that: (A) the Comptroller does not manage under Chapter 404; and <br /> (B) am held as a demand or time deposit by a depository institution expressly <br /> authorized by law to accept a pubic entity's demand or time deposit. <br /> (5) "Eligible security" means: (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 /> (D) a fixed-rate collateralized mortgage obligation that has an expected weighted <br /> average life of 10 years or less and does not constitute a tfigh-risk mortgage security; <br /> or <br /> (E) a floating rate collateralized mortgage obligation that does not constitute a high- <br /> risk mortgage security. <br /> (6) "Investment security" means: <br /> (A) an obligation that in the opinion of the Attorney General of the United States is <br /> a general obligation of the United States and backed by its full faith and credit; <br /> (B) a general or specific obligation issued by a public agency, that is payable from <br /> taxes, revenues, or a combination of taxes and revenues; or <br /> (C) a security in which a public emity may invest under Subchapter A, Chapter 2256. <br /> [The Public Funds Investment Act] <br /> (7) "Permitted institution" means: (A) a Federal Reserve Bank; <br /> (B) a clearing corporation as defined in Section 8.102(c), Business and Commerce <br /> Code; <br /> (C) a bank eligible to be a custodian under Section 2257.041; or <br /> (D) a state or nationally chartered bank that is controlled by a bank holding company <br /> <br />City of San Marcos Investment Policy Page 33 <br /> <br /> <br />