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r 354 3 2256.014 Historical and Statutory Notes Section 6 of the 1995 amendatory act pro. vides: "As provided by Section 1.02. Senate Bill No. 959. (ch. 761 Acts of the 74th Legislature. Regu- lar Session. 1995, this Act controls over Senate Bill No. 959 to the -extent of any conflict." Acts 1997. 75th Leg., eh. 1421, in subscc. (a). in subd. (1), ihserted "registered with and added new- subd. (2), and redesignated former subds. (2) and (3) as subds. (3) and (4), respec- tively. Type of securities 1 GOVEMMENT . CODE Title 10 For application provisions of Acts 1997. 75th. Leg.. eh. 1421. see notes following .V.T.CA., Government Code § 2256.002. Prior Laws: Acts 1987. 70th Leg., ch. 889. - Acts 1989, 71st Leg.. ch. 628, § 1. Acts 1991. 72nd Leg., ch. 732, § 1. Acts 1993, 73rd Leg.. ch. 946, § 1. Vernon's Ann.Civ.St art 842a -2, § 2(c), (d). Acts 1993, 73rd Leg., ch. 268, § 1. Acts 1995. 74th Leg., ch. 76. § 5.45(c). (f). V.T.C.A.. Gove:nment Code § 2256.011. Notes of Decisions 1. Type of sec•.trities The Public Funds Investment Act. V.T.C.S. arucle 842a -2, authorizes ciries. 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 entire invests no more of its.money in the mum - 21 fund than section 2(d) pe...niu. Op.Atty.Gen. 1993• No. DM -202. ' § 2256.01. Authorized Investments for State Agencies: Guaranteed In- vestment Contracts (a) A guaranteed investment contract is an authorized investment. for state agencies for bond proceeds under this subchapter ii the avaranteed investment contract: (1) has a defined termination date; (2) is secured by obligations described by Section 2236.009(a)(1), exclud- ing 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 governinsr body of the entity must specifically authorize guaranteed investment contracts as an elizible 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 auaranteed ' investment contract for which a qualifying bid is received; ::V --