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<br />BONDS-COUNTY, MUNICIPAL, Ere Art. 842a-2
<br />Title 22
<br />backed securities that have a market value of not less than the principal amount of the
<br />certificates or in any other manner and amount provided by law for deposits of the
<br />investing entities;
<br />(6) certificates of deposit issued by savings and loan associations domiciled in this state
<br />that are:
<br />(A) guaranteed or insured by the Federal Savings and Loan Insurance Corporation, or
<br />ita succeaaor; or
<br />(B) secured by obligations that are described by Subdivisions (l)-{4) of this subsection,
<br />which are intended to include all direct federal agency or instrumentality issued mortgage
<br />backed securities that have a market value of not less than the principal amount of the
<br />certificates or in any other manner and amount provided by law for deposits of the
<br />investing entitiesj
<br />(7) prime domestic bankers' acceptances;
<br />(8) commercial paper with a stated maturity of 270 days or less from the date of its
<br />issuance that either: .
<br />(A) is rated not less than A-I, P-l, or the ,equivalent by at least two nationally
<br />recognized credit rating agencies; or .
<br />(B) is rated at least A-I, P-l, or the equivalent by at least one nationally recognized
<br />credit rating agency and is fully secured by an irrevocable letter of credit issued by a
<br />bank organized and existing under the lawa of the United States or any state thereofj
<br />and .~,
<br />(9) fully collateralized repurchase agreementa having a defined termination date, se- .
<br />cured by obligations desen"bed by Subdivision (1) of this subsection, pledged with a third
<br />party selected or approved by the political entity, and placed through a primary govern-
<br />ment securities dealer, as deflDed by the Federal Reserve, or a bank domiciled in this
<br />state.
<br />Text of mNec. (a) as amended by Act& 1989, 71st Leg., ch. 693, 9 4, and Act.!
<br />1989, 71st Leg., ch. 750, 11
<br />See. 2. (a) An incorporated city or town, a county, a public school distric~ an
<br />institution of higher education as defined by Section 61.003 of the Education Code, any
<br />nonprofit corporation or public funds investment pool created under The Interlocal
<br />Cooperation Act (Article 4413(32e), Vernon's Texas Civil Statutes) acting on behalf of any
<br />of those entities, or a navigation district organized under Article III, Section 52, or Article
<br />XVI, Section 59, of the Texas Constitution may, in accordance with this Act purchase,
<br />sell, and invest ita funds and funds under ita control in. the following;
<br />(1) obligations of the United States or its agencies and instrumentalitiesj
<br />(2) direct obligations of the State of Texas or ita agencies;
<br />(3) other obligations, the principal of and interest on which are unconditionally guaran-
<br />teed or insured by the State of Texas or the United States;
<br />(4) obligations of states, agencies, coilnties, cities, and other political subdivisions of
<br />any state having been rated as to investment quality by a nationally recognized invest-
<br />ment rating fll'lIl and having received a rating of not less than A or its equivalen~
<br />(5) certificates of deposit issued by state and national banks domiciled in this state that
<br />are:
<br />(A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its succes-
<br />sor; or
<br />(B) secured by obligations that are desen"bed by Subdivisions (1)-(4) of this subsection,
<br />which are intended to include all direct agency or instrumentality issued mortgage backed
<br />securities rated AAJ.. by a nationally recognized rating agency, or by Chapter 726, Acta of
<br />the 67th Legislature, 'Regular Session, 1981 (Article 2529b-l, Vernon's Texas Civll
<br />Statutes), and that have a market value of not leas than the principal amount of the
<br />certificates;
<br />(6) fully eolIa:teralized direct repurchase agreementa having a dermed termination date,
<br />secured by obligations desen"bed by Subdivision (1) of this subsection, pledged with a third
<br />party selected or approved by the political entity, and placed through a primary govern.
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