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<br />(G) the custodian bank that is safekeeping the assets of the pool; <br /> <br />(H) a listing of daily transaction activity of the entity participating in the pool; <br /> <br />(I) the yield and expense ratio of the pool; <br /> <br />(J) the portfolio managers of the pool; and <br /> <br />(K) any changes or addenda to the offering circular. <br /> <br />(d) An entity by contract may delegate to an investment pool the authority to hold legal title as custodian of <br />investments purchased with its local funds. <br /> <br />(e) In this section, "yield" shall be calculated in accordance with regulations governing the registration of open-end <br />management investment companies under the Investment Company Act of 1940, as promulgated from time to time <br />by the federal Securities and Exchange Commission. <br /> <br />(f) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds <br />investment pool created to function as a money market mutual fund must mark its portfolio to market daily, and, to <br />the extent reasonably possible, stabilize at a $1 net asset value. If the ratio of the market value of the portfolio <br />divided by the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as <br />necessary to maintain the ratio between 0.995 and 1.005. <br /> <br />(g) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds <br />investment pool must have an advisory board composed: <br /> <br />(1) equally of participants in the pool and other persons who do not have a business relationship with the pool and <br />are qualified to advise the pool, for a public funds investment pool created under Chapter 791 and managed by a <br />state agency; or <br /> <br />(2) of participants in the pool and other persons who do not have a business relationship with the pool and are <br />qualified to advise the pool, for other investment pools. <br /> <br />(h) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an <br />investment pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one <br />nationally recognized rating service. <br /> <br />Amended by Acts 1995, 74th Leg., ch. 402, ~ 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, ~ 9, eff. Sept. 1, <br />1997. <br /> <br /><General Materials (GM) - References, Annotations, or Tables> <br /> <br />HISTORICAL AND STATUTORY NOTES <br />2000 Main Volume <br /> <br />Acts 1997, 75th leg., ch. 1421 added subsecs. (f) to (h). <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 />Prior Laws: <br />Acts 1979, 66th Leg., p. 2071, ch. 810. <br />Acts 1987, 70th Leg., ch. 889. <br />Acts 1989, 71st Leg., ch. 693, ~ 2. <br />Acts 1993, 73rd Leg., ch. 946, ~ 1. <br /> <br />Copr. @ West 2001 No Claim to Orig. U.S. Govt. Works <br />