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<br />excluding those mortgage backed securities of the nature described <br />by Section 2256.009(b); or <br /> <br />(3) secured in any other manner and amount provided by <br /> <br />law for deposits of the investing entity. <br /> <br /> <br />(b) In addition to the authority to invest funds in <br /> <br /> <br />certificates of deposit under Subsection (a), an investment in <br /> <br /> <br />certificates of deposit made in accordance with the following <br /> <br /> <br />conditions is an authorized investment under this subchapter: <br /> <br /> <br />(1) the funds are invested by an investing entity <br /> <br /> <br />through a depository institution that has its main office or a <br /> <br /> <br />branch office in this state and that is selected by the investing <br /> <br /> <br />entity; <br /> <br />(2) the depository institution selected by the investing <br /> <br />entity under Subdivision (1) arranges for the deposit of the funds <br /> <br />in certificates of deposit in one or more federally insured <br /> <br />depository institutions, wherever located, for the account of the <br /> <br />investing entity; <br /> <br />(3) the full amount of the principal and accrued <br /> <br />interest of each of the certificates of deposit is insured by the <br /> <br /> <br />United States or an instrumentality of the United States; <br /> <br /> <br />(4) the depository institution selected by the investing <br /> <br /> <br />entity under Subdivision (1) acts as custodian for the investing <br /> <br /> <br />entity with respect to the certificates of deposit issued for the <br /> <br /> <br />account of the investing entity; and <br /> <br />Page -20 - <br />