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353 <br />GENERAL GOVERNMENT § 2256.014 <br />Ch. 2256 -" <br />§ 22 6.014. Authorized Investments: Mutual Funds <br />(a) A no -load money market mutual fund is an authorized investment under <br />this subchapter if the mutual fund: , <br />(1) is registered with and regulated by the Securities and,._xchanee Com- <br />mission: <br />(2) provides the investing entity with a prospectus and. other information <br />required by the Securities Exchange Act of 1934 (15. U.S.C. Section 78a et <br />sda.) or the Investment Company Act of 1940 (15 U.S.C. Section 30a -1 et <br />sec.); <br />(3) has a dollar - weighted average stated maturity of 90 days or fewer: and <br />• (--Ir) includes in its investment. objectives the maintena�-ice of a stable net <br />asset value of S 1 for each share. <br />(b) In addition to a no -load monev market mutual fund pe.nnirted as an <br />authorized;invesrment in Subsection (a), a no -load mutual fund is an authorized <br />investment under this subchapter if the mutual fund: <br />(1) is registered with the Securities and Exchange Com_*nission: <br />(2) has an average weighted maturity of less than two veers; <br />(3) is invested exclusively in obligations approved by this subchapter, <br />(4) is continuously rated as to investment ouality by at least one natior-21_lv, <br />recoznized investment rating Cirrn of not less than AAA or its eauivalent; anc <br />(3) conforms to the requirements set forth in Sections 2256.016(b) and (c) <br />relating to the eliaibiliry of investment pools to receive and invest funds' of <br />infesting entities. <br />(c) An entity is not authorized by this section to: <br />(1) invest in the aggregate more than 80 percent of its monthly average <br />fund balance, excluding bond proceeds and reserves and other funds held for <br />debt service, in money market mutual funds described in Subsection (a) or <br />mutual funds described in Subsection (b), either separately or collectively; <br />(2) invest in the aggregate more than 15 percent of its monthly average <br />fund balance. excluding bond proceeds and reserves and other funds held for <br />debt service. in mutual funds described in Subsection (b); <br />(3) invest any portion of bond proceeds, reserves and funds held for debt <br />service, in mutual funds described in Subsection (b); or <br />(4) invest its funds or fiends under its control,*includin-, bond proceeds and <br />reserves and other funds held for debt service, in any one mutual fund <br />described in Subsection (a) or (b) in an amount that-exceeds 10 percent of the <br />total assets of the mutual fund.. <br />Amended by Acts 1995. 74th Lesr.. ch. 402. § 1, eff. Sept. 1. 1995; Acts 1997. 75th Leg... <br />ch. t ' 21. § ; . eff. Sept. 1. 1997. :,, , - 4- <br />