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<br />(0) The audit requirements of Subsection (n) do not apply to
<br />assets of a state agency that are invested by the comptroller under
<br />Section 404.024.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,
<br />1995; Acts 1997, 75th Leg., ch. 685, Sec. 1, eff. Sept. 1, 1997;
<br />Acts 1997, 75th Leg., ch. 1421, Sec. 3, eff. Sept. 1, 1997; Acts
<br />1999, 76th Leg., ch. 1454, Sec. 4, eff. Sept. 1, 1999; Acts 2003,
<br />78th Leg., ch. 785, Sec. 41, eff. Sept. 1, 2003.
<br />Sec. 2256.006. STANDARD OF CARE. (a) Investments shall be
<br />made with judgment and care, under prevailing circumstances, that a
<br />person of prudence, discretion, and intelligence would exercise in
<br />the management of the person's own affairs, not for speculation,
<br />but for investment, considering the probable safety of capital and
<br />the probable income to be derived. Investment of funds shall be
<br />governed by the following investment obj ecti ves, in order of
<br />priority:
<br />
<br />(1) preservation and safety of principal;
<br />(2) liquidity; and
<br />(3) yield.
<br />(b) In determining whether an investment officer has
<br />exercised prudence with respect to an investment decision, the
<br />determination shall be made taking into consideration:
<br />(1) the investment of all funds, or funds under the
<br />entity's control, over which the officer had responsibility rather
<br />than a consideration as to the prudence of a single investment;
<br />and
<br />(2) whether the investment decision was consistent with
<br />the written investment policy of the entity.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eft. Sept. 1,
<br />1995.
<br />Sec. 2256.007. INVESTMENT TRAINING; STATE AGENCY BOARD
<br />MEMBERS AND OFFICERS. (a) Each member of the governing board of a
<br />state agency and its investment officer shall attend at least one
<br />training session relating to the person's responsibilities under
<br />this chapter within six months after taking office or assuming
<br />duties.
<br />(b) The Texas Higher Education Coordinating Board shall
<br />provide the training under this section.
<br />(c) Training under this section must include education in
<br />investment controls, security risks, strategy risks, market risks,
<br />diversification of investment portfolio, and compliance with this
<br />chapter.
<br />(d) An investment officer shall attend a training session not
<br />less than once in a two-year period and may receive training from
<br />any independent source approved by the governing body of the state
<br />agency. The investment officer shall prepare a report on this
<br />subchapter and deliver the report to the governing body of the
<br />state agency not later than the 180th day after the last day of
<br />each regular session of the legislature.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,
<br />
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