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Art 842a -2 BONDS— COUNTY.
<br />MUNICIPAL. ETC.
<br />Mde 22
<br />meat securities dealer, as defined by the Federal Reserve, or a bank domiciled in this
<br />state; and
<br />M certificates of deposit issued by savings and loan associations domiciled in this state
<br />that are:
<br />(A) guaranteed or insured by the Federal Savings and or Loan Insurance Corporation or
<br />its successor,
<br />(B) secured by obligations that are described by Subdivisions (1}{4).of this subsection,
<br />which are intended to=include all direct federal agency or instrumentality issued mortgage
<br />backed securities that have a market value of not less than the principal amount of the
<br />certificates.
<br />(b) In addition to investment in obligations, certificates, or agreements described in
<br />Subsection (a) of this section, bond proceeds of an incorporated city or town, a county, a
<br />public school district, or a navigation district, or local revenue of an instituti on of 'higher,
<br />education' may be invested in common trust funds or comparable investment devices
<br />owned or administered by banks domiciled in this state and whose assets consist
<br />exclusively of all or a combination of the obligations described by Subsection (a) of this
<br />section. Common trust funds of banks domiciled in this state may be used if they:
<br />(1) are available;'
<br />M comply with the provisions of the Internal Revenue Code of 1986 and applicable
<br />federal regulations governing the investment of bond proceeds; and
<br />(3) meet the cash flow requirements and the investment needs of the political subdivi-
<br />sion or institution-
<br />(c) In this section:
<br />(1) 'Bond proceeds" includes but is not limited to proceeds from the sale of bonds and
<br />reserves and funds maintained for debt service purposes.
<br />(2) "Prime domestic bankers' acceptances" means a bankers' acceptance with a stated
<br />maturity of 270 days or less from the date of its issuance that will be in accordance with
<br />its firms, liquidated in full at maturity, that is eligible for collateral for borrowing from a
<br />Federal Reserve Bank, and that is accepted by a bank organized and existing under the
<br />laws of the United $fates or any state, the short -term obligations of which (or of. a bank
<br />holding company of which the bank is the largest subsidiary) are rated at least A -1, P -1,
<br />or the equivalent by at least oae nationally recognized credit rating agency.
<br />C3) " Repurchase agreement" means a . simultaneous agreement to buy, hold for a
<br />epecif�ed time, and then sell back at a future date, obligations described by Subsection
<br />(axl) of this section, the principal and interest of which are guaranteed by the- United
<br />States or any of its agencies, in market value of not less than the principal amount of the
<br />funds disbursed The term includes direct security repurchase agreements and reverse
<br />security repurchase agreements.
<br />Text of subsea (d) effective Au m
<br />education and in a eel es o 28, than for institutions qj higher
<br />jj jor entities other than institutions of higher edu- �
<br />Batson upon approval of constitutional amendment proposed by Awls 1989,
<br />71st Leg,, S.J.R. No. 59, as provided in Acts 7989, 71st Leg„ eh 628, § 5
<br />(d) In addition to the investments described by Subsection (a) of this section, an entity
<br />listed in that subsection may, in accordance with this Act, purchase, sell, and invest its .
<br />funds and funds under its control in an SEC - registered, no-load money market mutual
<br />fund with a dollar- weighted average portfolio maturity of 120 days or less whose assets
<br />consist exclusively of the obligations that are described by Subsection (a) of this section
<br />and whose investment objectives include seeking to maintain a stable net asset value of $1
<br />per share. No entity listed in Subsection (a) of this section is authorized by this Act to
<br />invest in the aV1rrevara .G
<br />total assets
<br />288
<br />wi
<br />Art 842a -2 BONDS— COUNTY.
<br />MUNICIPAL. ETC.
<br />Mde 22
<br />meat securities dealer, as defined by the Federal Reserve, or a bank domiciled in this
<br />state; and
<br />M certificates of deposit issued by savings and loan associations domiciled in this state
<br />that are:
<br />(A) guaranteed or insured by the Federal Savings and or Loan Insurance Corporation or
<br />its successor,
<br />(B) secured by obligations that are described by Subdivisions (1}{4).of this subsection,
<br />which are intended to=include all direct federal agency or instrumentality issued mortgage
<br />backed securities that have a market value of not less than the principal amount of the
<br />certificates.
<br />(b) In addition to investment in obligations, certificates, or agreements described in
<br />Subsection (a) of this section, bond proceeds of an incorporated city or town, a county, a
<br />public school district, or a navigation district, or local revenue of an instituti on of 'higher,
<br />education' may be invested in common trust funds or comparable investment devices
<br />owned or administered by banks domiciled in this state and whose assets consist
<br />exclusively of all or a combination of the obligations described by Subsection (a) of this
<br />section. Common trust funds of banks domiciled in this state may be used if they:
<br />(1) are available;'
<br />M comply with the provisions of the Internal Revenue Code of 1986 and applicable
<br />federal regulations governing the investment of bond proceeds; and
<br />(3) meet the cash flow requirements and the investment needs of the political subdivi-
<br />sion or institution-
<br />(c) In this section:
<br />(1) 'Bond proceeds" includes but is not limited to proceeds from the sale of bonds and
<br />reserves and funds maintained for debt service purposes.
<br />(2) "Prime domestic bankers' acceptances" means a bankers' acceptance with a stated
<br />maturity of 270 days or less from the date of its issuance that will be in accordance with
<br />its firms, liquidated in full at maturity, that is eligible for collateral for borrowing from a
<br />Federal Reserve Bank, and that is accepted by a bank organized and existing under the
<br />laws of the United $fates or any state, the short -term obligations of which (or of. a bank
<br />holding company of which the bank is the largest subsidiary) are rated at least A -1, P -1,
<br />or the equivalent by at least oae nationally recognized credit rating agency.
<br />C3) " Repurchase agreement" means a . simultaneous agreement to buy, hold for a
<br />epecif�ed time, and then sell back at a future date, obligations described by Subsection
<br />(axl) of this section, the principal and interest of which are guaranteed by the- United
<br />States or any of its agencies, in market value of not less than the principal amount of the
<br />funds disbursed The term includes direct security repurchase agreements and reverse
<br />security repurchase agreements.
<br />Text of subsea (d) effective Au m
<br />education and in a eel es o 28, than for institutions qj higher
<br />jj jor entities other than institutions of higher edu- �
<br />Batson upon approval of constitutional amendment proposed by Awls 1989,
<br />71st Leg,, S.J.R. No. 59, as provided in Acts 7989, 71st Leg„ eh 628, § 5
<br />(d) In addition to the investments described by Subsection (a) of this section, an entity
<br />listed in that subsection may, in accordance with this Act, purchase, sell, and invest its .
<br />funds and funds under its control in an SEC - registered, no-load money market mutual
<br />fund with a dollar- weighted average portfolio maturity of 120 days or less whose assets
<br />consist exclusively of the obligations that are described by Subsection (a) of this section
<br />and whose investment objectives include seeking to maintain a stable net asset value of $1
<br />per share. No entity listed in Subsection (a) of this section is authorized by this Act to
<br />invest in the aV1rrevara .G
<br />total assets
<br />288
<br />
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