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<br />officers or employees of the state agency, local government, or investment pool as investment officer to be <br />responsible for the investment of its funds consistent with the investment policy adopted by the entity. If the <br />governing body of an investing entity has contracted with another investing entity to invest its funds, the investment <br />officer of the other investing entity is considered to be the investment officer of the first investing entity for purposes <br />of this chapter. Authority granted to a person to invest an entity's funds is effective until rescinded by the investing <br />entity, until the expiration of the officer's term or the termination of the person's employment by the investing entity, <br />or if an investment management firm, until the expiration of the contract with the investing entity. In the <br />administration of the duties of an investment officer, the person designated as investment officer shall exercise the <br />judgment and care, under prevailing circumstances, that a prudent person would exercise in the management of the <br />person's own affairs, but the governing body of the investing entity retains ultimate responsibility as fiduciaries of <br />the assets of the entity. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any <br />other manner the funds of the investing entity. <br /> <br />(g) Subsection (I) does not apply to a state agency, local government, or investment pool for which an officer of the <br />entity is assigned by law the function of investing its funds. <br /> <br /><Text of subsec. (h) as amended by Acts 1997, 75th Leg., ch. 685, ~ 1> <br /> <br />(h) An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be <br />an investment officer for the commission under Subsection (t) if the officer or employee is an investment officer <br />designated under Subsection (I) for another local government. <br /> <br /><Text of subsec. (h) as amended by Acts 1997, 75th Leg., ch. 1421, ~ 3> <br /> <br />(h) An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be <br />designated as an investment officer under Subsection (t) for any investing entity other than for that commission. <br /> <br />(i) An investment officer of an entity who has a personal business relationship with a business organization offering <br />to engage in an investment transaction with the entity shall file a statement disclosing that personal business interest. <br />An investment officer who is related within the second degree by affinity or consanguinity, as determined under <br />Chapter 573, to an individual seeking to sell an investment to the investment officer's entity shall file a statement <br />disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics <br />Commission and the governing body of the entity. For purposes of this subsection, an investment officer has a <br />personal business relationship with a business organization if: <br /> <br />(1) the investment officer owns 10 percent or more of the voting stock or shares of the business organization or <br />owns $5,000 or more of the fair market value of the business organization; <br /> <br />(2) funds received by the investment officer from the business organization exceed 10 percent of the investment <br />officer's gross income for the previous year; or <br /> <br />(3) the investment officer has acquired from the business organization during the previous year investments with a <br />book value of $2,500 or more for the personal account of the investment officer. <br /> <br />(j) The governing body of an investing entity may specify in its investment policy that any investment authorized by <br />this chapter is not suitable. <br /> <br />(k) A written copy of the investment policy shall be presented to any person offering to engage in an investment <br />transaction with an investing entity or to an investment management firm under contract with an investing entity to <br />invest or manage the entity's investment portfolio. For purposes of this subsection, a business organization includes <br />investment pools and an investment management firm under contract with an investing entity to invest or manage <br />the entity's investment portfolio. Nothing in this subsection relieves the investing entity of the responsibility for <br />monitoring the investments made by the investing entity to determine that they are in compliance with the <br />investment policy. The qualified representative of the business organization offering to engage in an investment <br />transaction with an investing entity shall execute a written instrument in a form acceptable to the investing entity <br />and the business organization substantially to the effect that the business organization has: <br /> <br />Copr. @West2001 No Claim to Olig. U.S. Govt. Works <br />