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397 Acts 1995, 74th Leg., ch. 76, § 5.45(c), (f). V.T.C.A., Government Code § 2256.011. LIBRARY REFERENCES 2000 Main Volume Municipal Corporations OD�� 884. States C�� 124. WESTLAW Topic Nos. 268, 360. C.J.S. Municipal Corporations § 1881. C.J.S. States § 225. NOTES OF DECISIONS Type of securities 1 -L. Type of securities The Public Funds Investment Act, V.T.C.S. article 842a -2, authorizes cities, counties, and certain other public and nonprofit entities to invest their funds and funds under their control in mutual funds holding only adjustable rate mortgages that obligate United States agencies provided that the mutual fund complies with section 2(d) of the act, and provided that the entity invests no more of its money in the mutual fund than section 2(d) permits. Op.Atty.Gen.1993, No. DM -202. 2256.015. Authorized Investments: Guaranteed Investment Contracts (a) A guaranteed investment contract is an authorized investment for bond proceeds under this subchapter if the guaranteed investment contract: (1) has a defined termination date; (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 financial 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 Copr. © West 2001 No Claim to Orig. U.S. Govt. Works