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(2) is secured by obligations described by Section 2256.009(a)(1), excluding those obligations described by Section 2256.009(b), in an amount at least equal to the amount of bond proceeds invested under the contract and (3) is pledged to the entity and deposited with the entity or with a third party selected and approved by the entity. (b) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested under this subchapter in a guaranteed investment contract with a term of longer than five years from the date of issuance of the bonds. (c) To be eligible as an authorized investment (1) the governing body of the entity must specifically authorize guaranteed investment contracts as an eligible investment in the order, ordinance, or resolution authorizing the issuance of bonds; (2) the entity must receive bids from at least three separate providers with no material fmancial interest in the bonds from which proceeds were received; (3) the entity must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received; (4) the price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested; and (5) the provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed mvestment contract. Amended by Acts 1995, 74th Leg., ch. 402, § 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, § 8, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1454, 9, 10, eff. Sept. 1, 1999. <General Materials (GIV) - References, Annotations, or Tables> HISTORICAL AND STATUTORY NOTES 2000 Main Volume Acts 1997, 75th Leg., ch. 1421, in the section heading, inserted "for State Agencies" For application provisions of Acts 1997, 75th Leg., ch. 1421, see notes following V.T.C.A., Government Code $ 2256.002. Acts 1999, 76th Leg., ch. 1454, in the section heading, following "Investments" deleted "for State Agencies"; and in subsea (a), in the introductory paragraph, following "investment", deleted "for state agencies". LIBRARY REFERENCES 2000 Main Volume C Municipal Corporations 884 O States 124. WESTLAW Topic Nos. 268, 360. C.J.S. Municipal Corporations § 1881. C.J.S. States § 225. 2256.016. Authorized Investments: Investment Pools Copr. C West 2001 No Claim to Orig. U. S. Govt. Works