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<br />~ 2256.014 <br /> <br />GOVERL"J:MENT CODE <br />Title 1 0 <br /> <br />Section 6 of the 1995 <br />vides: <br /> <br />Historical and Statutory Notes <br /> <br />amcndatory act pro- For application provisions of Acts 1997. 75th <br />Leg.. ch. 1421. see notes following V.T.C_..... <br />Government Code S 2256.002. <br />, <br /> <br />Notes of Decisions <br /> <br />invest thcir funds and funds under their control <br />in mutual funds holding only adjustable rate <br />mortgages that obligate United States agencies <br />provided that the mutual fund eomplies with <br />section 2(d) of the act. and provided that the <br />cnrit'\' invests no more of its money in the mutu- <br />al fu~d than section 2(d) pe:mits.' Op.Atry.Ge:l. <br />1993. No. DM-202. <br /> <br />S 2256.015. Authorized Investments for State Agencies: Guaranteed In- <br />vestment Contracts <br /> <br />(a) A guaranteed investment contract is an authorized investment for state <br />a!!encies for bond oroceeds under this subchaoter if the guaranteed invesnnem <br />-.. .. -. <br />contract: <br /> <br />(1) has a defined termination date; . <br />(2) is secured by obligations described by Section 2256.009(a)(I). exclud- <br />ing those obligations described by Section 2256.009(b), in an amount at least <br />equal to the amount of bond proceeds invested under the contract; and <br />(3) is pledged to the entity and deposited with the entity or with a. third <br />party selected and approved by the entity. <br /> <br />(b) Bond proceeds, other than bond proceeds representing reserves and <br />funds maintained for debt service purposes. may not be invested under this <br />subchapter in a guaranteed investment contract with atenn of longer than five <br />years from the date of issuance of the bonds. <br /> <br />(c) To be eligible as an authorized investment: <br /> <br />(1) the governing body of the entity must specifically authorize guaranteed. <br />investment contracts as an eligible investment in the order. ordinance, or <br />resolution authorizing the issuance of bonds: <br />(2) the entity must'receive bids from at least three separate providers with <br />no material financial interest in the bonds from which proceeds were <br />received: <br /> <br />(3) the entity must purchase the highest yielding guaranteed. investment <br />contract for which a qualifying bid is received;, <br /> <br />"A5 provided by Section 1.02. Senate Bill No. <br />959. (eh. 76] Acts of the 74th Legislature. Regu. <br />13r Session. 1995. this Act controls over Senate <br />Bill No. 959 to the .e:ctent of any connie.." <br /> <br />Acts 1997. 75th Leg.. ch. 1421. in subsec. (a). <br />in subd. (I). inserted "registered with and". <br />added new subd. (2). and redesignated fonner <br />subds. (2) and (3) as subds. (3) and (4). respec. <br />tively. <br /> <br />Type of securities 1 <br /> <br />1. Type of sec-.uitles <br /> <br />The Public Funds Investment Act. V.T.C.S. <br />anicle 842a-2. authorizes cities. counties.' and <br />cenai:l other public and nonprofit e:ltities to <br /> <br />. <br /> <br />Prior Laws: <br />Acts 1987. 70th Leg.. ch. 889. <br />Acts 1989. 71st Leg.. ch. 628. S 1. <br />Acts 1991. nnd Leg.. ch. 732. S 1. <br />Acts 1993. 73rd Le2" ch. 946. S 1. <br />Vernon's Ann.Civ.S.. an. 8'42a-2. S 2(c). (d). <br />Acts 1993. 73rd Leg.. ch. 268. S 1. <br />Acts 1995. 74th Le!!.. ch. 76. S 5.4S(c). CO. <br />V.T.C.A.. Gove:-nm;;nt Code S 2256.011. <br /> <br />.l <br /> <br />. ---r <br />