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<br />~ 2256.014 <br /> <br />GOVERNMENT CODE <br />Title 10 <br /> <br />Historical and Statutory Notes <br /> <br />Section 6 of the 1995 amend:nory act pro- For application provisions of Acts 1997. 75th <br />vides: Leg., ch. 1421. see notes following V.lC.A., <br />Government Code 9 2256.002. <br /> <br />Notes of Decisions <br /> <br />invest their funds and funds under their control <br />in mutual funds holding only adjustable rate <br />mongages tbat obligate United States agencies <br />provided thaI the mutual fund complies witb <br />section 2(d) of tbe act, and provided that the <br />entit\. invests no more of its money in the mutu- <br />al fund than section 2(d) permits. - Op.Atry.Ge:l. <br />1993, No. DM-202. <br /> <br />"As provided by Section 1.02, Senate Bill No. <br />959. [ch. 76] Acts of the 74th Legislature. Regu- <br />lar Sc:ssion. 1995, this Act controls over Senate <br />Bill No. 959 to the 'extent of any conflict." <br /> <br />Acts 1997. 75th Leg.. ch. 1421, in subsec. (a). <br />in subd. (1), ihserted "registered with and", <br />added new subd. (2), and redesignated fonner <br />subds. (2) and (3) as subds. (3) and (4). respec- <br />tivelv. <br />" <br /> <br />Type of seCurities 1 <br /> <br />I. Type of sec-Jrities <br />The Public Funds Investment Act. V.T.C.S. <br />anicle 842a-2, authorizes cities. counties,' and <br />certain other public and nonprofit entities to <br /> <br />Prior Laws: <br />Acts 198i, iOth Leg., ch. 889. <br />ActS 1989, 715t Leg., ch. 628, 9 1. <br />Acts 1991, i2nd Leg., ch. 732,9 1. <br />Acts 1993. i3rd Leg.. ch. 946. 9 1. <br />Vernon's Ann.CiV.SL an 842a-2. 9 2(c). (d). <br />Acts 1993, i3rd Leg., ch. 26B, 9 1. <br />ActS 1995, 74th Leg., ch. i6. S 5.45(c), (f). <br />V.T.C.A., Government Code 9 2256.011. <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 Droceeds under this subchaDter if the EUaranteed invesnne:lt <br />...... . w <br /> <br />contract: <br />(1) has a defined termination date; .. <br />(2) is secured bv obli2:ations described by Section 2256.009(a)(1), exclud- <br />.. ... .. <br /> <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 /> <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 a tenn 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 /> <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 qualif:ving bid is received; _' <br /> <br />I ~ <br /> <br />."~...."._".... .., <br /> <br />....".......... <br />