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<br />officer's responsibilities under this subchapter within 12 months after taking office or assuming dmies~ and
<br />
<br />(2) t:.\cept liS provided by Subsections (b) and (eL attend an investmellttrailling session nm less than
<br />once in a two-year period and receive not less than! (J hours ofinstrllction relating to investment responsibilities under
<br />this subchapter from an independent source appro\ed by the govemmg bod) orthe local govemrncnt or ~ designated
<br />investment committee advising the investment officcr as provided I'DI' in the investment policy of the local government.
<br />
<br />(h) An investing enlity created under authol'lt} of Section 52(b), AI1.icle 111. or Section 59, Article XVI, Texas
<br />Constitution, that lias contracted with an investment management linn under Section 2256.003(b) and has fewer than live
<br />full-time employees or an investing entity that ha~ contracted with ,ll1othcr lnve.sting entit} to invest the entity's funds
<br />may satisf'y the training requirement provided by Subsection (a)(21 by having an officer oflhe governing body ultend 1(1LlT
<br />hours of appropriate instructIOn in a two-year period, The treasurer or chief Iinancial officer of un investing entity
<br />created under authority of Section 52{b), Article III, or Section 59, Article X VI, Texas Con,~titutlon, and that has fewer
<br />than tlve full-lime employees is not required to al\cmj training n:qllired b} this sectioll unless the person is ,,!tio the
<br />invcstment officer of the entity
<br />
<br />Ic) Tfaining. under this section must include education in investment controls, security risks, strate!?} risks,
<br />market risks, divcrsification of inveslrnctit portfolio, and compliance with this chapter.
<br />
<br />(d) Not later than December 3] each yeur, each individual, association, busllless, organi'l...Hion, governmental
<br />entity, or other person thai provides training uuderthis section shall report to the comptroller a list of the governnwlltal
<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 11 rcpof1of lhe individual's employer or the sponsoring or
<br />organizing entity of 1\ training program or seminar
<br />
<br />Ie) This section does not apply 10,\ distm;l gO\iemed by Chapter 36 or 49, \Valer Code,
<br />Amended by Acts 1995, 74th Leg" ch. 402. Sec, L eff. Sept. L 1995, Acts 1997, 75th Lcg" clL1421, See, 5, err. Sept.
<br />I, 1997; Acts 1999, 76th Leg., eh, 1454, See, 6, efr Sept I, 1999: '\cts 200 I, 77th Leg., eh, 69, Sec. 4, cif: May 14,
<br />1001.
<br />
<br />Sec. 2256,009, At T'IIORJZED INVF,>TMENTS: OBLIGATIO'S OF, ()R GUARANTEED In
<br />GOVER>JMENTAL ENTITIES, (a) Except as provided by Subsection (b), the following are authorized'ill\'cstlllenls
<br />under this subchnpter:
<br />(1) obligations, including letter<; of credit, of the \ !nit.ed ,>tates or its agencies and instnunentalitics:
<br />
<br />(2) direct obligations of this state or its agencies and instrumentalities:
<br />
<br />(3) eollateralil.ed mortgage obi igations directly issued by a federal agency or instrumentality of tile
<br />t:nitcd States, the underlying security for which is guaranteed by an agency or instrumentality ofrhe United Stmes:
<br />
<br />(4) other obi igations, the principal and inlerest of which are unconditionally guaranteed or insured b),
<br />or backed by the hIli thith and credit of. this state aT lhe United Slales or their respective agencies and instrumentalities;
<br />
<br />(5) obligations of states , agencies, countics, cities. and other political subdivisions orany stale rated as
<br />to investment quality b} a nationally recognized investment rating fim1 not less than A or its equivalent; and
<br />
<br />(6) bonds issued, assumed, or guaranteed by the State of Israel,
<br />(b) The following nrc nOI authorized im estments under tillS section:
<br />
<br />( I) obligations whose payment n:presents the coupon payments on the olltsltlllding principal balallt:e Ill'
<br />the underlying mortgage-backed security eollalernl and pays no principa.l:
<br />
<br />(2) obligations whose payment represents lhe principal stream of eash !low from the underl:- ing
<br />mortgage-hacked security collateral and bears no imerest;
<br />
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