Laserfiche WebLink
1. Validity <br />Insofar as this article purports to authorize political corporations and political subdivisions to invest public funds in <br />bank-oriented money market mutual funds or other securities of private entities, it conflicts with article III, section <br />52, of the Texas Constitution. OpAtty.Gen.1988, Na JM-975. <br />2. Delegation of authority <br />The Interlocal Cooperation Act, article 4413(32c), V.T.C.S., does not authorize local governments to delegate to <br />another entity their authority to make investments; nor does article 842a-2, V.T.C.S., or article 4413(34c), authorize <br />such delegation. OpAtty.Gen.1988, Na JM-932. <br />$ 2256.002. Definitions <br />In this chapter: <br />(1) "Bond proceeds" means the proceeds from the sale of bonds, notes, and other obligations issued by an entity, <br />and reserves and funds maintained by an entity for debt service purposes. <br />(2) "Book value" means the original acquisition cost of an investment plus or minus the accrued amortization or <br />accretion. <br />(3) °Funds" means public funds in the custody of a state agency or local government that <br />(A) are not required by law to be deposited in the state treasury; and <br />(B) the investing entity has authority to invest. <br />(4) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code. <br />(5) "Investing entity" and "entity" mean an entity subject to this chapter and described by Section 2256.003. <br />(6) "Investment pool" means an entity created under this code to invest public funds jointly on behalf of the entities <br />that participate in the pool and whose investment objectives in order of priority are: <br />(A) preservation and safety of principal; <br />(B) liquidity; and <br />(C) yield. <br />(7) °Local government" means a municipality, a county, a school district, a district or authority created under <br />Section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution, a fresh water supply district, a <br />hospital district, and any political subdivision, authority, public corporation, body politic, or instrumentality of the <br />State of Texas, and any nonprofit corporation acting on behalf of any of those entities. <br />(8) °Market value" means the current face or par value of an investment multiplied by the net selling price of the <br />security as quoted by a recognized market pricing source quoted on the valuation date. <br />(9) "Pooled fund group" means an internally created fund of an investing entity in which one or more institutional <br />accounts of the investing entity are invested. <br />(10) "Qualified representative" means a person who holds a position with a business organization, who is <br />authorized to act on behalf of the business organization, and who is one of the following: <br />Copr. C West 2001 No Claim to Orig. U. S. Govt. Works <br />