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(2) is secured by obligations described by Section <br />2256.009(a)(1), excluding those obligations described by Section <br />2256.009(b), in an amount at least equal to the amount of bond <br />proceeds invested under the contract; and <br />(3) is pledged to the entity and deposited with the <br />entity or with a third party selected and approved by the entity. <br />(b) Bond proceeds, other than bond proceeds representing <br />reserves and funds maintained for debt service purposes, may not be <br />invested under this subchapter in a guaranteed investment contract <br />with a term of longer than five years from the date of issuance of <br />the bonds. <br />(c) To be eligible as an authorized investment: <br />(1) the governing body of the entity must specifically <br />authorize guaranteed investment contracts as an eligible investment <br />in the order, ordinance, or resolution authorizing the issuance of <br />bonds; <br />(2) the entity must receive bids from at least three <br />separate providers with no material financial interest in the bonds <br />from which proceeds were received; <br />(3) the entity must purchase the highest yielding <br />guaranteed investment contract for which a qualifying bid is <br />received; <br />(4) the price of the guaranteed investment contract must <br />take into account the reasonably expected drawdown schedule for the <br />Page -28 - <br />