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<br />(3) collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States,
<br />the underlying security for which is guaranteed by an agency or instrumentality of the United States;
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<br />(4) other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by
<br />the full faith and credit of, this state or the United States or their respective agencies and instrumentalities;
<br />
<br />(5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to
<br />investment quality by a nationally recognized investment rating firm not less than A or its equivalent; and
<br />
<br />(6) bonds issued, assumed, or guaranteed by the State of Israel.
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<br />(b) The following are not authorized investments under this section:
<br />
<br />(I) obligations whose payment represents the coupon payments on the outstanding principal balance of the
<br />underlying mortgage-backed security collateral and pays no principal;
<br />
<br />(2) obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed
<br />security collateral and bears no interest;
<br />
<br />(3) collateralized mortgage obligations that have a stated final maturity date of greater than IO years; and
<br />
<br />(4) collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to
<br />the changes in a market index.
<br />
<br />Amended by Acts 1995, 74th Leg., ch. 402, ~ I, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1454, ~ 7, eff. Sept. I,
<br />1999.
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<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 />Acts 1999, 76th Leg., ch. 1454, in subsec. (a) added subd. (6).
<br />
<br />Prior Laws:
<br />Acts 1987, 70th Leg., ch. 889.
<br />Acts 1989, 71st Leg., ch. 39, ~ 1.
<br />Acts 1989, 71st Leg., ch. 628, ~ 1.
<br />Acts 1989, 71st Leg., ch. 693, ~ 4.
<br />Acts 1989, 71st Leg., ch. 750, ~ 1.
<br />Acts 1993, 73rd Leg., ch. 946, ~ 1.
<br />Vernon's Ann.Civ.St. art. 842a-2. ~ 2(a).
<br />Acts 1993, 73rd Leg., ch. 268, ~ 1.
<br />Acts 1993, 73rd Leg., ch. 820, ~ 2.
<br />Acts 1995, 74th Leg., ch. 76, S 5,45(a), (t).
<br />Acts 1995, 74th Leg., ch. 402. S 5.
<br />V.T.eA., Government Code ~ 2256.006.
<br />
<br />LIBRARY REFERENCES
<br />2000 Main Volume
<br />
<br />Copr. @West2001 No Claim to Orig. U.S. Govt. Works
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