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

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.~. GENERAL GOVERNMENT Ch. 2256 ~ 2256.014. Authorized Investments: Mutual Funds ~ 2256.014 (a) A no-load money market mutual fund is an authorized investment under tl:is subchapter if the mutual fund: (1) is rezistered with and regulated bv the Securities and E'tchanze Com- - -... - mission: . (2) provides the investing entity with a prospectus anc\ other information n:quired by the S~curities Exchange Act of 1934 (15 U.S.C. Section 78a et sc:q.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-l et seq.J: (3) has a dollar.weighted average stated maturity of 90 days or fewer: and . (4) includes in its investment objectives the maintena..,ce of a stabie net asset value of S I for each share. (bl In addition to a no-load money market mutual fund permitted as an 2.mhorizc:d investment in Subsection (a), a no-load mutual fund is an authorized in\'estment under this subchapter if the mutual fund: (1) is registered with the Securities and Exchange Com..rnission: (2) has an average weighted maturity of less than two ye:;.rs: (3) is invested exclusively in obligations approved by this subchapter; (4) is continuously rated as to investment quality by at least one nationally reco~!lized investment rating firm of not less than ~ or its equivalent: anc. (5) conforms to the requirements set forth in Sections 2256.016(b) and (c) rdating to Ll].e eligibility of invesrment pools to receive and invest funds of investing entities. (cl An entity is not authorized by this section to: (I) invest in the aggregate more than 80 percent of its monthly average fund b3.lance, excluding bond proceeds and reserves and other funds held for debt service. in money market mutual funds described in Subsection (a) or mutual funds described in Subsection (b). either separately or collecti.....ely; (2) invest in the aggregate more than 15 percent of its monthly average fund balance. excluding bond proceeds and reserves and other funds held for debt service. in mutual funds described in Subsection (b); (3) invest any portion of bond proceeds. reserves and funds held for debt se~ice. in mutual funds described in Subsection (b); or (4) bvest its funds or funds under its conrrol. including bond proceeds and rcser"ves and other funds held for debt service. in anyone mutual fund described in Subsection (a) or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund. J , Amended by Acts 1995. 74th Leg.. ch. 402. 9 I. eff. Se?t. I. 1995: Acts 1997. 75th L;:g.. ch. 1421. 9 7. eff. Sqt. I. 1997. . --J.- -.