|
<br />(3) collateralized mortgage obligations that have a stated final maturi!) date of greater than ] 0 ye<Jrs;
<br />
<br />and
<br />
<br />(4) collateralized mortgag.e obligations the imerest rate of which is determined by un index thaI adjusts
<br />opposite to the changes in a market index,
<br />Amended by Acts 1995, 74th Leg" ch.402, Sec. L eff. Sept. I, 1995; Acts 1999, 76th Leg" ell, 1454, Sec. 7. de. <)epl.
<br />1,1999; Acts 2001, 17th Leg., eh, 558, See, 1, efT. Sept. l. 2001.
<br />
<br />Sec. 2256.010. ALTHORIZED INVESTMENTS: CERTIFICATES OF DEPOSIT AND SHARE
<br />CERTIFICA rES. (a) A certificate of deposit orshare certificate is an authorized investment undertllls subchapter ifthe
<br />certi1icate is issued by a depository institution that has its main office or a branch ofliee in this sUlte and is:
<br />
<br />(I) guaranteed or insured by the Pederal Deposit Insurance Corporation or it, successororthe "Jatillnal
<br />Credit Onion Share Insurance Fund or its successor;
<br />
<br />(2) secured by obligations that are described by Section 2256,009(a), including mortgage hacked
<br />securities dircctly issued by a federal agency or instrumentality that have a market value afnot less than the pnncipal
<br />amount of the certifieHles, but excluding those mortgage backed securities of the nature described b~ S"ctlon
<br />2256.009(b): or
<br />
<br />(3) secured in any other manner and amount provided by law f<)r deposits of the investIng entity,
<br />(b) In addition to the authority to invest funds in certificates of deposit undcr Subsection (a). an investment in
<br />certificates of deposit made in accordance with the following conditiolls is an authorized investment under tbis
<br />subchapter:
<br />(I j the funds nre invested by all investing entity through a depository institution that has its main office
<br />or a branch office in this state and that is selected b') the investing entity;
<br />
<br />(2) the depository institution selectcd by the invcsting cntity under Subdivision (1) arranges for the
<br />deposit oflhe funds in certificates of deposit in OIlC or more federally insured dcpository institutions, wherever located.
<br />for the account of the investing entit'),;
<br />
<br />(3) the full amount of tile principal and accrued inlerest of each of the eertilicates of deposit is insllred
<br />by (he United States or an instrumentality of the United States:
<br />
<br />(4) the depository institution s<.:lccted by the investing entity under Subdivision (1) acts as cllstodian
<br />for the investing entit) with respect to the certificates of deposit issued for the account of thc investing entity; and
<br />
<br />(5) at the same time that tbe funds are deposited and the cenilicates ofdcposit nrc issued for the
<br />account of the investing cntity, the depository institution selected b} the investing elltity under Subdivision (I) reccives
<br />an amount of deposits from CllSlOmers of other federally insl1red depOSito!)' institutions, wherever located. that is equallo
<br />or greater than the amount of the funds invested by the investing entity through the depository institution selected under
<br />Subdivision (I).
<br />Amended by Acts 19<)5, 74th Leg., eh. 32, Sec. 1, efl April 28, (99). Acts 1.995, 74th Leg" ch. 402. See, I, erL Sept. 1.
<br />1995; Acts 1997, 75th Leg..ch. 1421. See. 6, efT Sept. 1,1997. >\cts 2005. 79th Leg.. eh, 128, See, I, erf. Sept. L
<br />2005,
<br />
<br />Sec. 2256.0 11, AUTHORIZED INVEST\1ENTS: REPURCHASE AGREEMENTS, (a) A fully collatcrulizd
<br />repurchase agreement is an authorized investment under this subchapter ifthe repurchase agreement:
<br />(I) has a defined temlination date:
<br />(2) is secured by obligations dcscribed by Section 2256,OU9Ia)(l); <Inti
<br />(31 requires the securities being purchased by the entity to be pledged to the entity, held in the entity's
<br />name, and deposited at the lime the investment is made with the entity or with a third party selected and approved by the
<br />entity; and
<br />(4) is placed through 11 primary government securities dealer, as defined by the Federal Resene. or a
<br />financial institution doing business in this state,
<br />(b) 1.n t.his section, "repurchase agreement" means a simultaneous agreement to buy. hold for a sped fled time,
<br />
<br />Page 24
<br />
<br />",~i_t)/ cf San ~farc,~.s ..'..rn,'estmCI1T: ,~c !,,?,Ci/
<br />
|