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(b) The following are not authorized investments under this <br />section: <br />(1) obligations whose payment represents the coupon <br />payments on the outstanding principal balance of the underlying <br />mortgage-backed security collateral and pays no principal; <br />(2) obligations whose payment represents the <br />principal stream of cash flow from the underlying mortgage-backed <br />security collateral and bears no interest; <br />(3) collateralized mortgage obligations that have a <br />stated final maturity date of greater than 10 years; and <br />(4) collateralized mortgage obligations the interest <br />rate of which is determined by an index that adjusts opposite to the <br />changes in a market index. <br />Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, <br />1995; Acts 1999, 76th Leg., ch. 1454, Sec. 7, eff. Sept. 1, 1999; <br />Acts 2001, 77th Leg., ch. 558, Sec. 1, eff. Sept. 1, 2001. <br />Sec. 2256.010. AUTHORIZED INVESTMENTS: CERTIFICATES OF <br />DEPOSIT AND SHARE CERTIFICATES. (a) A certificate of deposit or <br />share certificate is an authorized investment under this subchapter <br />if the certificate is issued by a depository institution that has <br />its main office or a branch office in this state and is: <br />(1) guaranteed or insured by the Federal Deposit <br />Insurance Corporation or its successor or the National Credit Union <br />Share Insurance Fund or its successor; <br />(2) secured by obligations that are described by <br />Section 2256.009(a), including mortgage backed securities directly <br />issued by a federal agency or instrumentality that have a market <br />value of not less than the principal amount of the certificates, but <br />excluding those mortgage backed securities of the nature described <br />by Section 2256.009(b) ; or <br />(3) secured in any other manner and amount provided by <br />law for deposits of the investing entity. <br />(b) In addition to the authority to invest funds in <br />certificates of deposit under Subsection (a), an investment in <br />certificates of deposit made in accordance with the following <br />conditions is an authorized investment under this subchapter: <br />13 <br />- „ _ 5 <br />CJ <br />