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<br />C.J.S. States ~ 225. <br /> <br />& 2256.014. Authorized Investments: Mutual Funds <br /> <br />(a) A no-load money market mutual fund is an authorized investment under this subchapter if the mutual fund: <br /> <br />(I) is registered with and regulated by the Securities and Exchange Conunission; <br /> <br />(2) provides the investing entity with a prospectus and other information required by the Securities Exchange Act <br />of 1934 (I5 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.Co Section 80a-I et seq.); <br /> <br />(3) has a dollar-weighted average stated maturity of90 days or fewer; and <br /> <br />(4) includes in its investment objectives the maintenance ofa stable net asset value of$1 for each share. <br /> <br />(b) In addition to a no-load money market mutual fund permitted as an authorized investment in Subsection (a), a <br />no-load mutual fund is an authorized investment under this subchapter if the mutual fund: <br /> <br />(1) is registered with the Securities and Exchange Conunission; <br /> <br />(2) has an average weighted maturity of less than two years; <br /> <br />(3) is invested exclusively in obligations approved by this subchapter; <br /> <br />(4) is continuously rated as to investment quality by at least one nationally recognized investment rating fIrm of not <br />less than AAA or its equivalent; and <br /> <br />(5) conforms to the requirements set forth in Sections 2256.016(b) and (c) relating to the eligibility of investment <br />pools to receive and invest funds of investing entities. <br /> <br />(c) An entity is not authorized by this section to: <br /> <br />(1) invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and <br />reserves and other funds held for debt service, in mutual funds described in Subsection (b); <br /> <br />(2) invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in <br />Subsection (b); or <br /> <br />(3) invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt <br />service, in anyone mutual fund described in Subsection (a) or (b) in an amount that exceeds 10 percent of the total <br />assets of the mutual fund. <br /> <br />Amended by Acts 1995, 74th Leg., ch. 402, ~ 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, ~ 7, eff. Sept. I, <br />1997; Acts 1999, 76th Leg., ch. 1454, ~ 8, eff. Sept. I, 1999. <br /> <br /><General Materials (GM) - References, Annotations, or Tables> <br /> <br />HISTORICAL AND STATUTORY NOTES <br />2000 Main Volume <br /> <br />Section 6 of the 1995 amendatory act provides: <br /> <br />"As provided by Section 1.02, Senate Bill No. 959, [ch. 76] Acts of the 74th Legislature, Regular Session, 1995, <br />this Act controls over Senate Bill No. 959 to the extent of any conflict." <br /> <br />Copr. @ West 2001 No Claim to Orig. u.S. Govt. Works <br />