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<br />I <br /> <br />I <br /> <br />I <br /> <br />L <br /> <br />APPENDIX D <br /> <br />COLLATERAL F'OR PUBLlCHJNDS <br /> <br />Chapter 2257, Texas Government Code <br /> <br />Subchapter A, General Provisions <br />Effective As Of September 1, 2003 <br /> <br />S 2257 001. Short Title <br /> <br />This chapter may be cited as the Public Funds Collateral Act <br /> <br />Added by Acts 1993, 73rd Leg, eh. 268,9 I, eff. Sept. 1. I 993.Acts 2003, 78th Leg. eff Sept 1,2003, <br /> <br />S 2257.002, Definitions In this chapter: <br /> <br />(1) "Bank holding company" has the meanmg assigned by Section 31.002( a), Finance Code, <br />(2) "Control" has the meaning assigned by Section 3L002(aJ, Fmance Code. <br />(3) "Deposit of public funds" means public funds of a public entity that: <br />(A) the comptroller does not manage under Chapter 404; and <br />(B) are held as a demand or time deposit by a depository institutIOn expressly authonzed by <br />law to accept a public entity's demand or time deposit. <br />(4) "Eligible security" means: <br />(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 seH an investment security; <br />(D) a fixed-rate collateralized mortgage obligation that has an expected weighted average life <br />of 10 years or less and does not constitute a high-risk mortgage security; or <br />(E) a floating-rate collateralized mortgage obligation that does not constitute a high-risk <br />mortgage security. <br />(5) "Investment security" means: <br />(A) an obligation that III the opinion of the attorney general of the United States is a general <br />obligation of the United States and backed by its full faith and credit; <br />(B) a general or special obligation issued by a public agency that is payable from taxes, <br />revenues, or a combination of taxes and revenues; or <br />(C) a security 10 which a public entJty may invest under Subchapter A, Chapter 2256, <br />(6) "Permitted institution" means: <br />(A) a Federal Reserve Bank; <br />(B) 3 clearing corporation, as defined by Section 8.102, Business & Commerce Code: <br />(C) a bank eligible to be a custodian under Section 2257041; or <br />(D) a state or nationally chartered bank that is controlled by a bank holding compan} that <br />controls a bank eligible to be a custodian under Section 2257,04 I, <br /> <br />City of San Marcos lnvestment Policy <br /> <br />Page 32 <br />