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States � 124.
<br />WESTLAW Topic Nos. 268, 360.
<br />C.J.S. Municipal Corporations § 1881.
<br />C.J.S. States § 225.
<br />§ 2256.011. Authorized Investments: Repurchase Agreements
<br />(a) A fully collateralized repurchase agreement is an authorized investment under this subchapter if the repurchase
<br />agreement:
<br />(1) has a defined termination date;
<br />(2) is secured by obligations described by Section 2256.009(a)(1); and
<br />(3) requires the securities being purchased by the entity to be pledged to the entity, held in the entity's name, and
<br />deposited at the time the investment is made with the entity or with a third party selected and approved by the
<br />entity; and
<br />(4) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial
<br />institution doing business in this state.
<br />(b) In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and
<br />sell back at a future date obligations described by Section 2256.009(a)(1), at a market value at the time the funds are
<br />disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase
<br />agreement and a reverse security repurchase agreement.
<br />(c) Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days
<br />after the date the reverse security repurchase agreement is delivered.
<br />(d) Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire
<br />additional authorized investments, but the term of the authorized investments acquired must mature not later than the
<br />expiration date stated in the reverse security repurchase agreement.
<br />Amended by Acts 1995, 74th Leg., ch. 402, § 1, eff. Sept. 1, 1995.
<br /><General Materials (GM) - 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 />Prior Laws:
<br />Acts 1987, 70th Leg., ch. 889.
<br />Acts 1989, 71st Leg., ch. 39, § 1.
<br />Acts 1989,7 1 st 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), (c).
<br />Acts 1993, 73rd Leg., ch. 268, § 1.
<br />Acts 1995, 74th Leg., ch. 76, § 5.45(b), (f).
<br />Copr. 0 West 2001 No Claim to Orig. U.S. Govt. Works
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