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$ 2256.009. Authorized Investments: Obligations of, or Guaranteed by Governmental Entities
<br />(a) Except as provided by Subsection (b), the following are authorized investments under this subchapter:
<br />(1) obligations of the United States or its agencies and instrumentalities;
<br />(2) direct obligations of this state or its agencies and instrumentalities;
<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;
<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 />(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 />(6) bonds issued, assumed, or guaranteed by the State of Israel.
<br />(b) The following are not authorized investments under this section:
<br />(1) 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 />(2) obligations whose payment represents the 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 stated fmal maturity date of greater than 10 years; and
<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 />Amended by Acts 1995, 74th Leg., ch. 402, § 1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1454, § 7, eff. Sept. 1,
<br />1999.
<br /><General Materials (GIV) - References, Annotations, or Tables>
<br />HISTORICAL AND STATUTORY NOTES
<br />2000 Main Volume
<br />Section 6 of the 1995 amendatory act provides:
<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 />Acts 1999, 76th Leg., ch. 1454, in subsea (a) added subd. (6).
<br />Prior Laws:
<br />Acts 1987, 70th Leg., ch. 889.
<br />Acts 1989, 71 st Leg., ch. 39, § 1.
<br />Acts 1989, 71 st Leg., ch. 628, § 1.
<br />Acts 1989, 71 st Leg., ch. 693, § 4.
<br />Acts 1989, 71 st Leg., ch. 750, § 1.
<br />Acts 1993, 73rd Leg., ch. 946, § 1.
<br />Copr. C West 2001 No Claim to Orig. U. S. Govt. Works
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