|
<br />and sell back at a future date obligations described bS Scction 2256,009(a)II), at a market value at the time the funds arc
<br />disbursed of not less than the principal amollnt of the funds disbursed, The tenn includes a dired security repurchase
<br />agreement and a reverse security repurchase agreement.
<br />(c) Notwithstanding any other law, the term of any reverse security repurchase agreement may nm exceed 90
<br />days after the dale the reverse security repurchase agreement is deli vered.
<br />(d) Moncy received by an entity under the temlS of a reverse security repurchase agreement shall be used 10
<br />acquire additional authorized lI1vestments, hl11 the term of the authorized investments acquired must mature notlatcr than
<br />the expiration date slat cd in thc reverse security repurchase agreement.
<br />Amended by Acts 1995, 74th Leg.. eh, 402, Sec, L efe Sepl. L 1995.
<br />
<br />See, 2256,0115 At THORIZED INVESTMENTS' SECt 'IUTIES LENDING PROGRAM. (a) A securilies
<br />lending program is an authorized investment under this subchapter ifit meels lhe conditions provided by lhls scctlon,
<br />
<br />(b) To quality as HIl authorized investment under this subl:hapter:
<br />(I) th.' value of securities loaned under the program must be Il()tless than 100 percent collateralized,
<br />including accrued income;
<br />(2) a Joan made under the program must allow for termination at any time;
<br />(3) a loan madc under the program must be secured by;
<br />(AI pledged securities described by Section 2256.009:
<br />(B) pledged irrevocable letters of credit issued by a bank that is;
<br />(i) organized and existing under [he laws ofthe United States or an)' olher slate: and
<br />(ii) continuously rated by at least one nationally recognized investment rating rim] at
<br />not less than A or its equivalent; or
<br />(el cash invested in accordam:e with Section:
<br />(i) 2256.009;
<br />(ii) 2256,0 l3:
<br />(iil) 2256,014', or
<br />(iv) 2256,01 h,
<br />(4) the terms of a 103n made under the program JIlust require that the securities being held <1" collllleral
<br />
<br />be;
<br />
<br />(\) pledged to the investing entity:
<br />(B) held in the investing entity's name; and
<br />(C) deposited at the time the il1veSll1lCm i, made with the entity or with a [hiI'd pan) scleckd
<br />by or approved by the investing entity;
<br />(5) a loan made under the progrnm must be placed l.hrough:
<br />('\j a primal) government securities dealer, as defined by 5 C.F,R, Section 6S0 1,\ 02(t), as
<br />that regulation existed on September 1,2003; or
<br />(B) afinanclaJ instill1\ion doing business in this state; and
<br />(6) an agreement to lend securities that is executed under this section must have a tern, of one year or
<br />
<br />less.
<br />Added by Acts 2003. 7Slh Leg" ch, 1227. Sec ], elf Sept I, 200J,
<br />
<br />Sec, 2256.012, AUTHORIZED INVESTiVIENTS: BANhER'S ACCEPTANCES, A bankers' acecplance is an
<br />authorized investment under this subchaptcr if the bankers' acceptance:
<br />(I) has a stated maturity of 270 days 01' jewel' from the date of its issuance;
<br />(2) will be, in accordance with ils tenns, liquidated in full at maturity:
<br />(3) is eligible for collateral for borrowing trom a Federal Reserve Bank, and
<br />(4) is accepted by a bank organized and existing lindeI' the laws ufthe United Slates or any slale, if/he
<br />short-tenn obligations of the bank, 01' of a bank holding company of which the bank is the largest subsidiary, arc rated not
<br />less than A-1 ()r P-I or an equivalent rating by at least one nationally recognized credit rating agene),
<br />Amended by Acts 1995, 74th Leg., ch, 402. Sec. I, eIT. Sept. 1,19'15,
<br />
<br />Sec. 2256,013. AUHIORIZED INVESTMENTS: CO:vIMERCIAl PAPER, CQlllmercial paper is aT
<br />
<br />Page 25
<br />
<br />~:it\- ~)f 3dn t.ldL c,s lnJ0stmenI. _~__1.:.:,"'.~f
<br />
|