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<br />(c) This chapter does not prohibit an investing entity or
<br />investment officer from using the entity's employees or the
<br />services of a contractor of the entity to aid the investment
<br />officer in the execution of the officer's duties under this
<br />chapter.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,
<br />1995; Acts 1999, 76th Leg., ch. 1454, Sec. 2, eff. Sept. 1, 1999.
<br />Sec. 2256.004. APPLICABILITY. (a) This subchapter does not
<br />apply to:
<br />(1) a public retirement system as defined by Section
<br />
<br />802.001;
<br />
<br />(2) state funds invested as authorized by Section
<br />
<br />404.024;
<br />
<br />(3) an institution of higher education having total
<br />endowments of at least $95 million in book value on May 1, 1995;
<br />(4) funds invested by the Veterans' Land Board as
<br />authorized by Chapter 161, 162, or 164, Natural Resources Code;
<br />(5) registry funds deposited with the county or district
<br />clerk under Chapter 117, Local Government Code; or
<br />(6) a deferred compensation plan that qualifies under
<br />either Section 401(k) or 457 of the Internal Revenue Code of 1986
<br />(26 D.S.C. Section 1 et seq.), as amended.
<br />(b) This subchapter does not apply to an investment donated
<br />to an investing entity for a particular purpose or under terms of
<br />use specified by the donor.
<br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1,
<br />1995; Acts 1997, 75th Leg., ch. 505, Sec. 24, eff. Sept. 1, 1997;
<br />Acts 1997, 75th Leg., ch. 1421, Sec. 2, eff. Sept. 1, 1997; Acts
<br />1999, 76th Leg., ch. 62, Sec. 8.21, eff. Sept. 1, 1999; Acts 1999,
<br />76th Leg., ch. 1454, Sec. 3, eff. Sept. 1, 1999.
<br />Sec. 2256.005. INVESTMENT POLICIES; INVESTMENT STRATEGIES;
<br />INVESTMENT OFFICER. (a) The governing body of an investing entity
<br />shall adopt by rule, order, ordinance, or resolution, as
<br />appropriate, a written investment policy regarding the investment
<br />of its funds and funds under its control.
<br />(b) The investment policies must:
<br />(1) be written;
<br />(2) primarily emphasize safety of principal and
<br />liquidity;
<br />(3) address investment diversification, yield, and
<br />maturity and the quality and capability of investment management;
<br />and
<br />(4) include:
<br />(A) a list of the types of authorized investments
<br />in which the investing entity's funds may be invested;
<br />(B) the maximum allowable stated maturity of any
<br />individual investment owned by the entity;
<br />(C) for pooled fund groups, the maximum dollar-
<br />weighted average maturity allowed based on the stated maturity date
<br />for the portfolio;
<br />
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