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<br />Acts 1989, 71st Leg., ch. 750, S 1. <br />Acts 1993, 73rd Leg., ch. 946, 9 1. <br />Vernon's Ann.Civ.St. arts. 842a-2. & 2(a). (c)(4); 4413(34c), S 1. <br />Acts 1993, 73rd Leg., ch. 268, S 1. <br />Acts 1995, 74th Leg., ch. 76, S 5.45(e), (t). <br />V.T.C.A.. Government Code && 2256.002, 2256.051. <br /> <br />NOTES OF DECISIONS <br /> <br />Public funds 1 <br /> <br />1. Public funds <br /> <br />The Public Funds Investment Act, Government Code chapter 2256, subchapter A, applies only to certain public <br />funds. Public funds are those funds belonging to the state or a political subdivision that the state has collected in <br />accordance with a general law and that will be used to serve the public interest generally. A governmental entity <br />may invest under the act only public funds that, among other things, the entity is authorized to invest by a statute <br />other than the act. Op.Atty.Gen.1998, No. DM-489. <br /> <br />The Conunissioner of Banking may not invest under the act [the Public Funds Investment Act, Government Code <br />chapter 2256, subchapter A] funds of a liquidated, uninsured bank or a trust company in conservatorship because the <br />funds are not public funds. Likewise, the Conunissioner may not invest under the act funds of a liquidated <br />perpetual-care cemetery. The Conunissioner may not invest under the act seized prepaid-funeral-contract funds, nor <br />may the Conunissioner invest under the act money in the prepaid-funeral-contract guaranty fund. Finally, the <br />Conunissioner may not invest travel-advance funds under the act because the Conunissioner does not have the <br />statutory authority to do so. Op.Atty.Gen.1998, No. DM-489. <br /> <br />& 2256.003. Authority to Invest Funds: Entities Subiect to This Chapter <br /> <br />(a) Each governing body of the following entities may purchase, sell, and invest its funds and funds under its control <br />in investments authorized under this subchapter in compliance with investment policies approved by the governing <br />body and according to the standard of care prescribed by Section 2256.006: <br /> <br />(1) a local government; <br /> <br />(2) a state agency; <br /> <br />(3) a nonprofit corporation acting on behalf of a local government or a state agency; or <br /> <br />(4) an investment pool acting on behalf of two or more local governments, state agencies, or a combination of those <br />entities. <br /> <br />(b) In the exercise of its powers under Subsection (a), the governing body of an investing entity may contract with <br />an investment management firm registered under the Investment Advisers Act of 1940 (15 V.S.C. Section 80b-l et <br />seq.) or with the State Securities Board to provide for the investment and management of its public funds or other <br />funds under its control. A contract made under authority of this subsection may not be for a term longer than two <br />years. A renewal or extension of the contract must be made by the governing body of the investing entity by order, <br />ordinance, or resolution. <br /> <br />(c) This chapter does not prohibit an investing entity or investment officer from using the entity's employees or the <br />services of a contractor of the entity to aid the investment officer in the execution of the officer's duties under this <br />chapter. <br /> <br />Amended by Acts 1995, 74th Leg., ch. 402,9 1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1454,92, eff. Sept. 1, <br />1999. <br /> <br />Copr. ~ West 2001 No Claim to Orig. U.S. Govt. Works <br />