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<br />GOVER..''IlMENT CODE <br />Title 1 0 <br /> <br />(k) A wrinencopy of the investment policy shall be presented to any person <br />offering to engage in an investment transaction with an investing entity. For <br />purposes of this subsection. a business organization includes investment pools. <br />Nothing in this subsection relieves the investing entity of'the responsibility for <br />monitoring the investments made by the investing entity to deternline that they <br />are in compliance with the investment policy. The qualified representative of <br />the business organization offering to engage in an investment transaction with <br />- - - - . <br />an investing entity shall execute a wrinen instrument in a form acceptable. to <br />the investing entity and the business organization substantially to the effect that <br />the business organization has: <br />(1) received and reviewed the investment policy of the. entity; and <br />(2) acknowledged that the business organization has implemented reason- <br />able procedures and controls in an effort to preclude investment transactions <br />conducted between the entity and the organization that are not authorized by <br />the entity's invesrment policy. except to the extent that this authorization is <br />dependent on an analysis of the makeup of the entity's entire portfolio or <br />requires an interpretation of subjective inv'esnnent standards. <br />(l) The investment officer of an entitY may not acquire or othe:-v.ise obtain <br />any authorized investment described in the investment policy of the investing <br />entity from a person who has not delivered to the entity the instrument required <br />by Subsection (k). <br />(m) An investing entity, in conjunction with its annual financial audit, shall <br />perform. a compliance audit of management controls on investments and <br />adherence to the entity.'s established investment policies. State agencies shall <br />report the results of the audit performed under this .subsection to .the state <br />auditor. The state auditor shall compile the results of reports received under <br />this subsection and annually report those results to the legislative audit conimit- <br />tee. <br /> <br />s 2?-6 00- <br />::; -;). ;) <br /> <br />---. <br /> <br />J <br /> <br />Amended by Acts 1995, i4ili Leg.. ch. 402. 9 1. eff. Sept. 1. 1995; Acts 1997, 75th Leg.. <br />ch.685.9 1. eff. Sept. 1. 1997; Acts 1997, 75th Leg.. ch. 1421. 93. eff.Sept. 1. 1997. <br /> <br />Historical and Statutory Notes <br /> <br />ActS 1997. 75th Leg.. ch. 685. rc"TO'C subsec. <br />(h). which previously read: <br />"An officer or employee of a commission cre. <br />a'ed under Chao,er 391. Local Government <br />Code. is indistibl~ '0 be desirna,ed as an invest. <br />men' officer ,mder Subsection (I) ." <br /> <br />ActS 1997. 75th Leg.. ch. 1421. in subsec. (b). <br />in subd. (4). in par. (C). substinned "dollar- <br />weigh'ed average" for "ave:-age dollar.weigh,. <br />ed". added pan. (D) and (E). and made other <br />nonsubstantive changes; in sub:lec. (d). inserted <br />"or group of. funds": in suosec. (e). inserted <br />'The governing body shall adopt a wrinen in- <br />strument bv rule. order. ordinance. or rcsolu- <br />'ionsuting'that it has reviewed the investment <br />polic~' and investmen, str.1,egies and that the <br />wrinen instrument so adop,ed shall record any <br /> <br />changes made to either the invescDe:n policy or <br />investmen' stratecies."; in subsce. (I). deleted ". <br />Unless othenvise- authorized by law. a person <br />may not deposit. withdraw. invest. transfer, or <br />mana"e in any other manner funds of a state <br />agenc).. local 'government. or investment pool <br />without express wrinen authority of the gove:-n- <br />ing body. chief executive officer. or chief finan- <br />cial officer of the state agen<=:,'. local govern- <br />ment. or invesonent pool.... deleted "deposit. <br />withdraw.... deleted ". tr:lnsfer. or manage", <br />and insened "In the administration of the <br />duties of an investIIlent officer. the person des- <br />i"naled as invcsunent officer shall exen:ise the <br />judgment and care. under prevailing circum- <br />stances. tha' a prudent person would exercise in <br />the mana"ement of the person' s own affairs. <br />Unless authoi-ized bylaw. a person may not <br /> <br />_.J <br />