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<br />(7) "Public agency" means a state or a political or governmental entity, agency, instrumentality, or
<br />subdivision of a state, includmg a municipality, an institution of higher education, as defined by
<br />Section 61 .003, Education Code, a junior college, a district created under Article XVI, Section 59, of
<br />the Texas Constitution, and a public hospitaL .
<br />(8) "Public entity" means a public agency in this state, but does not include an institution of higher
<br />education, as defined by Section 61,003, Education Code,
<br />(9) "State agency" means a public entity that:
<br />(A) has authority that is not limited to a geographic portion of the state; and
<br />(B) was created by the constitution or a statute.
<br />(10) "Trust receipt" means evidence ofrecelpt, identification, and recording, including:
<br />(A) a physical controlled trust receIpt; or
<br />(8) a written or electronically transmItted advice of transaction,
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<br />Added by Acts 1993, 73rd Leg, ch. 268, ~ 1, efr. Sept. 1, 1993 Amended by Acts 1995, 74th Leg_,
<br />ch. 76, ~ 5.48(a), eff. Sept. ], 1995; Acts 1995, 74th Leg., ell, 9] 4, ~ 5, err. Sept. 1, 1995, Acts 1997,.
<br />75th Leg" eh, 254, S I, eff Sept. 1,1997; Acts 1997, 75th Leg., ell. 891, 9 3.22(4), eff. Sept. 1,
<br />1997; Acts 1997, 75th Leg., ch, 1423, ~ 8,70. eff. Sept. 1,1997; Acts 1999, 76th Leg., eh. 62, ~ 7 63,
<br />eft: Sept. 1, 1999,
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<br />S 2257.0025, High-Risk Mongage Security
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<br />(a) For purposes of this chapter, a fixed-rate collateralized mortgage obligation is a high-risk
<br />mortgage security if the security:
<br />{1) has an average life sensitivity \vith a weighted average life that.
<br />(A) extends by more than four years, assuming an immediat~ and sustained parallel
<br />shift in the )'lCld curve of plus 300 basis points; or
<br />(8) shortens by more than six years, assuming an immediate and sustained parallel
<br />shift in the yield curve of minus 300 basis points; and
<br />(2) is price sensitive; that is, the estimated change in the price of the mortgage derivative
<br />product is more than 17 percent, because of an immediate and sustained parallel shift in the
<br />yield curve of plus or minus 300 baSIS points.
<br />(b) For purposes of this chapter, a floating-rate collateralized mortgage obligation is a high~risk
<br />mortgage security if the security:
<br />(I) beats an interest rate that is equal to the contractual cap on the instrument; or
<br />(2) is pnce sensltive~ that is, the estimated change in the price of the mortgage derivative
<br />product is more than 17 percent, because of an immediate and sustained parallel shift in the
<br />yieJd curve of plus or minus 300 basis points,
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<br />Added by Acts 1997, 75th Leg, ch. 254., fi 2., eff. Sept. 1, J 997.
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<br />92257.003_ Chapter Not Applicable to Deferred Compensation Plans This chapter does not apply to
<br />funds that a public entity maintains or administers under a deterred compensation plan, the federal
<br />income tax treatment of which IS governed by Section 40] (k) or457 ofthe Internal Revenue Code of
<br />1986 (26 U.S.c. Sections 401(k) and 457),
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<br />City of San Marcos Investment Policy
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