1998-036-RES WHEREAS, CHAPTER 2256 OF TEXAS GOVERNMENT CODE

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S 2256.005 GOVERN;VIENl COnE Title 10 (l) be wrinen; (2) primarily emphasize safety of principal and liquidity; (3) address investment diversification, yield, and maturity and the quality and capability of investment management; and (4) include: (A) a list of the types of authorized investments LT'l which the investing entity's funds may be invested; J' (B) the maumum allowable slated maturity of any individual investment owned by the entity; (C) for pooled fund groups, the maximum dollar-weighted average matu- rity allowed based on the stated maturity date for the ponfolio; (D) methods to monitor the market price of investmentS acquired with public funds; and (E) a requirement for senlemem of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis. (c) The L.'1vesnne:lt policies may pro\~~e that bids for cenificates of deposit be solicited: (1) orallv; .- (?) . . . - m wnung; (3) electronically; or (4) in anv combination of those methods. " (ci) As an integral pan of an investment policy, the governing body $hall adopt a separate wrinen investment strategy for each of the funds or group of funds under itS control. Each investment'strate~' must describe the invest- .... ' ment objectives for the parJcular fund using the following priorities- in order of imDonance: (1) unde:sranding of the suitability of .the investment to the financial requirements of the entity; (2) preservation and safety of principal: (3) liquidity; (4) marketability of the investment if the need arises to liquidate the investment before maturity; (5) diversification of the investment portfolio; and (6) yield. (e) The ~oveming bodv of an investing entity shall review itS invesnnent policy and - invesnn;m sU:ategies not less lhan ~TJually. Tne governing body shall adopt a wrinen instnlment by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and investment strategies and that the wrinen instrUment so adopted shall record any changes made to either the investment policy or invesnnent strategies. (f) E:lch investing entity shall designate, by rule, orde~,...9rdinance, or resolu- tion. as appropriate, one or more officers or employees of the state agency, .- ...... . ....--"""