1999-003-CHAPTER 2256 OF THE TEXAS GOVERNMENT CODE, PUBLIC FUND INVESTMENT ACT

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I -- - GE.:\i."ERAL GOVER."iME.:\i."T Ch. 2256 :12256.lJl1 Historic:ll and Statutory Notes ActS 1995. 7.:th Leg.. ch. 32. in the section For application provisions of ActS 1997. 75th beauing. addetl "and share certiEic:ltos"; in the Leg.. ch. 1421. see notes following V.T.e.\... imroductory paragraph. inserted "or share cer. Government Code 9 2256.002. till~ate". following "the certificate". deleted "of Prior Laws: ' deposit". and insened ", or a state or federal A 1987 70th L h SSo ctS , ell.. c. . . eredit union domiciled in this state"; and in A 1989 -I L h -9 < 1 CtS ,/steg..c.~.,. subd. OJ, added "or the N:>.tional Credit Union ActS 1989. 71st Leg.. ch. 628. 9 1. Share Insurance Fund or itS successor". ActS 1989, 71st Leg.. ch. 693. 94. Acts 1989. 71st Leg.. ch. 750.3 1. Vernon's Ann.Civ.SL an. S413-2. 9 2(a). ACtS 1993. 73rd Leg.. ch. 268, 9 1. V.T.C.A.. Government Code 3 2256.007. Acts 1997, 75th Leg.. ch. 1421. in the intro. ductory lanlruage, substituted "bank" for "and lo~n :LSsod.:uion". ~ 2256.011. Authorized Investments: Repurchase Agreements (a) A fully collateralized repurchase agreemem is an authorized inves;:me:lt under this subchapter if the repurchase agreement: (I) has a defined termination date; (2) is secured by obligations described by Section 2256.009(a)(!); and (3) requires the securities being purchased by the entity to be pledged to the entity, held in the entity's name, and deposited at the time the inves;:me:1t is made with the entity or with a third par.:y selected and approved by the emity; a."'1d (4) is placed through. a primary governme:1t securities dealer. as defined by the Federal Reserve, or a financial institution doing bus mess in this SLate. (b) In this section, "repurchase agreement" means a simultaneous agree- me:1t to buv. hold for a specified time. and sell back at a furore date oblie-ations described bv Section 2256.009(a)(!),'at a market value at the time the ru;ds are disbursed ;r not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement. (c) Notwithstanding any other law, the term of any reverse security repur- chase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. (d) Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized invest- ments, but the term of the authorized investments acauired must marore not later than the expiration date stated in the reverse sec~ty repurchase agree~ me:1t. J Amended by Acts 1995. 74th Leg.. ch. 402. 9 1. eff. Se?L I, 1995. ,. , Historic:U and Statutory Notes ! j :1 c , .1 'I Sec:ion 6 of the 1995 amendatory ~ct pro- ,'ides: .. As provided by Section 1.02. Senate Bill No. 959. [ch. 76j Acts of the 74th Legisbture. Regu- lar Session. 1995. this Act controls ove~ Sen~te Bill No. 959 to the e:'ttent of any conflic:." .-.4-- -.