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<br />(2) is secured by obligations described by Section 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 proceeds invested under the contract; and <br /> <br />(3) is pledged to the entity and deposited with the entity or with a third party selected and approved by the entity. <br /> <br />(b) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, <br />may not be invested under this subchapter in a guaranteed investment contract with a term of longer than five years <br />from the date of issuance of the bonds. <br /> <br />(c) To be eligible as an authorized investment: <br /> <br />(1) the governing body of the entity must specifically authorize guaranteed investment contracts as an eligible <br />investment in the order, ordinance, or resolution authorizing the issuance of bonds; <br /> <br />(2) the entity must receive bids from at least three separate providers with no material financial interest in the bonds <br />from which proceeds were received; <br /> <br />(3) the entity must purchase the highest yielding guaranteed investment contract for which a qualifying bid is <br />received; <br /> <br />(4) the price of the guaranteed investment contract must take into account the reasonably expected drawdown <br />schedule for the bond proceeds to be invested; and <br /> <br />(5) the provider must certify the administrative costs reasonably expected to be paid to third parties in connection <br />with the guaranteed investment contract. <br /> <br />Amended by Acts 1995, 74th Leg., ch. 402, S 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, S 8, eff. Sept. 1, <br />1997; Acts 1999, 76th Leg., ch. 1454, SS 9, 10, eff. Sept. 1, 1999. <br /> <br /><General Materials (GM) - References, Annotations, or Tables> <br /> <br />mSTORICAL AND STATUTORY NOTES <br />2000 Main Volume <br /> <br />Acts 1997, 75th Leg., ch. 1421, in the section heading, inserted "for State Agencies". <br /> <br />For application provisions of Acts 1997, 75th Leg., ch. 1421, see notes following V.T.C.A.. Government Code & <br />2256.002. <br /> <br />Acts 1999, 76th Leg., ch. 1454, in the section heading, following "Investments" deleted "for State Agencies"; and <br />in subsec. (a), in the introductory paragraph, following "investment", deleted "for state agencies". <br /> <br />LIBRARY REFERENCES <br />2000 Main Volume <br /> <br />Municipal Corporations ~ 884. <br /> <br />States ~ 124. <br />WESTLA W Topic Nos. 268, 360. <br />C.J.S. Municipal Corporations S 1881. <br />C.J.S. States S 225. <br /> <br />& 2256.016. Authorized Investments: Investment Pools <br /> <br />Copr. @ West 2001 No Claim to Orig. U.S. Govt. Works <br />