Res 2006-193 - Laserfiche WebLink

Home Browse Search

circumstances, that a prudern person would exercise in the managcment of tile person's own affairs, but the gO\cl11ing body ofthe investing entity rcta1l15 ultimate responsibility as fidllciaries oflhe assets ofthc cntity. Lnless authorized h} law. a person may not deposit, withdraw, transfer, \x manage in any other manner the funds orlhe investing entit). (g) Subsection (I) does not apply to <l state agency, 10c,11 go\ernlllent, or investmcJIl pool forwhjeh an officer of thL: entity is lIssigned by law the function of investing its funds. Text of subsec, (h) as amended by Acts 1997. 75th Leg" eh. 685, Scc. I (h) An of!iceror employee ofa commission created under Chapter 39\, Local Government Code, is incligibk to be an investment ofticer for the commission under Sllbsection (f) if the officer or employee is an investmenL oflin~r designated under Subsection (f) for another local gnvemment. Text of sub sec. (hI as amended by Acts 1997, 75th Leg., eh. 142], Ser:. 3 (h) An officer or employee ofa commission created under Chapter 391, Local Government Code, is ineligible to be dcsignated as an in \'!::stmcnt officer under Subsection (f) t<)r all) investing entity other than for that commission. (i) An investment ollicer of an entity who has H personal business relationship with a business organiz.ation offering tQ engage in an investment transaction \vith the entity shall file a statement disclosing: that personal business inlerest. An investment ofliccr who is related within the second degn::e by affinity or consanguinity, as detcnnincd under Chapter 573, to an individual seeking to sell an investment to the investment officer's entity shall file a statement disclosing that relationship. A slatement required under this subsection must be tiled With tbe Texas Ethics COnllll1SSl0n and the governing body of the enlity. For purposes orthis subsection, an investment officer has a personal business relationship with a business organization if: (]) the investment officer owns 10 percent or more of the vOling stock or shares ol'the business organization or ovms $5.000 or more ofthe fair market value orthe business orglmization; (2) llmds received by the investment officer ii'om the business organizalion excced \ 0 percent orthe investment officer's gross income for the previous yellr; or (3) lhe investment officer has acquired from the business organization during the previous ye.ar investments with a book value of $2.5 00 or more for the personal account of the investment officer, OJ The governing hody of an investing el1tit) ma} ,peeify in its investment policy that any investl11ent authorized by this chapter is not suitable. (k) A written copy of the investment policy shall be presented to any person offering to engage in an investment transaction with an investing entity or to an investment management firtn under eomraet with an investing entity to invest or manage the entity's investment porl{blio, For purpuses of/his subsection, a busincss organiUjtion includes investment pools and an investment nlllnagcment firm under contract with an investing entity to invest or manage the emity's investment portfolio. Nothing in this subsection re.lieves the investing emity of the responsibility for monitoring tile investments made by the invcsting entity to determine that they are in compliance with the investment policy, The qualified representative of the business organization oflering to engage in un investment transaction with an investing entity shall execute a wTiUen instrument in a form acceptable to the investing entity and the business organization substantially to the effect that the business organization has: ( I) received and reviewed the investment policy of the entity; and (2} acknowledged tbat the business organization has implemented reasonable procedures and controls in an effort to pr~dude investment Inlnsactions conducted between the entity and the organization that are not authorized by the entity's investment policy, except to the extent that this authOrization is dependent on fin analysis l1fthc makeup of the emity's entire portfolm or re<luires an interpretalion of subjeetiw investment standards (I) The iuvestment oOker of an entity Inny not acquire 01' otherwise obtain any RUlhonz.cd investment described in the investment policy ofthe In vesting entity from a person who has not delivered to the emit) the instrument requ ired by Subsection (k). (mJ An investing entity other tban a state agency, in conjunction with its annuli I financial audit. shall pertlmn a compliance audit ofmllnagclllent cOlltl'ols on inveSlInents and adherence to the entity's established investment policies, (n) Except as provided by Subsection (ol. at leasl once every two years a statc agency shall amlllge for a Page 21 '''-it.)' of. ~':)a.n f"'fat"(., -';:.; f.'nv&:s't:rnenr. cy