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<br />(e) This section does not apply to a district governed by
<br />Chapter 36 or 49, Water Code.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,
<br />1995; Acts 1997, 75th Leg., ch. 1421, Sec. 5, eff. Sept. 1, 1997;
<br />Acts 1999, 76th Leg., ch. 1454, Sec. 6, eff. Sept. 1, 1999; Acts
<br />2001, 77th Leg., ch. 69, Sec. 4, eff. May 14, 2001.
<br />Sec. 2256.009. AUTHORIZED INVESTMENTS: OBLIGATIONS OF, OR
<br />GUARANTEED BY GOVERNMENTAL ENTITIES. (a) Except as provided by
<br />Subsection (b), the following are authorized investments under this
<br />subchapter:
<br />(1) obligations, including letters of credit, of the
<br />United States or its agencies and instrumentalities;
<br />(2) direct obligations of this state or its agencies and
<br />instrumentalities;
<br />(3) collateralized mortgage obligations directly issued
<br />by a federal agency or instrumentality of the United States, the
<br />underlying security for which is guaranteed by an agency or
<br />instrumentality of the United States;
<br />(4) other obligations, the principal and interest of
<br />which are unconditionally guaranteed or insured by, or backed by
<br />the full faith and credit of, this state or the United States or
<br />their respective agencies and instrumentalities;
<br />(5) obligations of states, agencies, counties, cities,
<br />and other political subdivisions of any state rated as to
<br />investment quality by a nationally recognized investment rating
<br />firm not less than A or its equivalent; and
<br />(6) bonds issued, assumed, or guaranteed by the State of
<br />Israel.
<br />(b) The following are not authorized investments under this
<br />section:
<br />(1) obligations whose payment represents the coupon
<br />payments on the outstanding principal balance of the underlying
<br />mortgage-backed security collateral and pays no principal;
<br />(2) obligations whose payment represents the principal
<br />stream of cash flow from the underlying mortgage-backed security
<br />collateral and bears no interest;
<br />(3) collateralized mortgage obligations that have a
<br />stated final maturity date of greater than 10 years; and
<br />(4) collateralized mortgage obligations the interest
<br />rate of which is determined by an index that adjusts opposite to
<br />the changes in a market index.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,
<br />1995; Acts 1999, 76th Leg., ch. 1454, Sec. 7, eff. Sept. 1, 1999;
<br />Acts 2001, 77th Leg., ch. 558, Sec. 1, eff. Sept. 1, 2001.
<br />Sec. 2256.010. AUTHORIZED INVESTMENTS: CERTIFICATES OF
<br />DEPOSIT AND SHARE CERTIFICATES. A certificate of deposit or share
<br />certificate is an authorized investment under this subchapter if
<br />the certificate is issued by a state or national bank domiciled in
<br />this state, a savings bank domiciled in this state, or a state or
<br />federal credit union domiciled in this state and is:
<br />
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