1995-122-RES WHEREAS, CITY COUNCIL DID BY RESOLUTION NO 90-009 ON FEBRUARY 12, 1990
RESOLUTION NO. 95-122
WHEREAS, the City Council of the City of Paris did, by Resolution No. 90-009
on February 12, 1990, adopt investment policies as official policies of the City of Paris to
be incorporated into the Uniform Policy and Procedures Manual of the City of Paris; and,
WHEREAS, the Director of Finance for the City of Paris has presented revisions
to the investment policies which meet the requirements set forth in Chapter 2256 of the
Government Code; and,
WHEREAS, the City Council desires to revise such policies in accordance with
state law and said revisions, in the form attached hereto as Exhibit A, should be adopted;
NOW THEREFORE,
BE IT RESOLVED BY TIlE CITY COUNCIL OF THE CITY OF PARIS, that
the revised investment policies in the form attached hereto as Exhibit A, be, and they are
hereby adopted as official policies of the City of Paris and the same shall be incorporated
into the Uniform Policy and Procedures Manual of the City of Paris.
BE IT li'URTHER RESOLVED, that the City Manager of the City of Paris,
Michael E. Malone, be, and he is hereby directed to implement the revised policies hereby
approved.
PASSED AND ADOPTED this 13th day of November, 1995.
ayor
A TTJ<::5T:
~~,.~~
Mattie Cunningham, City Cler
INVESTMENT POLICY
].0 POLlCY
It is the policy of the City of Paris to invest public funds in a manner which will provide the
highest investment return with the maximum security while meeting the daily cash flow demands
of the entity and conforming to all state and local statutes governing the investment of public
funds.
2.0 SCOPE
This investment policy applies to the funds listed below. These funds are accounted for in the
City's Comprehensive Annual Financial Report,
2.1 Funds
2.1.1 General Fund
2.1.2 Water and Sewer Fund
2.1.3 Capital Projects Fund
2.1.4 Library Construction Fund
2.1.5 Water Revenue Construction Fund
2. J.6 Child Safety Fund
2, 1,7 CID Grant Fund
2.1.8 C 0 1993 Construction Fund
2.1.9 Solid Waste Bond Construction Fund
2.1.10 Employee's Insurance Fund
2.1.11 Library Memorial Fund
2.1.12 1. A. Love Trust Fund
2.1.13 1. P. Poteet Trust Fund
2.1.14 Wilbor-DeShong Trust Fund
2.1.15 Economic Development Fund
2.1.16 Community Development Grant Fund
2. I ,17 Revenue Bonds Sinking Fund
2.1.18 C 0 1993 I & S Fund
2.1.19 Contractual Obligation I & S Fund
3.0 PRUDENCE
Investments shall be made with judgement and care--under circumstances then prevailing--which
persons of prudence, discretion and intelligence exercise in the management of their own affairs,
not for speculation, but for investment, considering the probable safety of their capital as well as
the probable income to be derived.
EXHIBIT. A
3.1 The standard of prudence to be used by investment officials shall be the "prudent
person" standard and shall be applied in the context of managing an overall portfolio. Investment
officers acting in accordance with written procedures and the investment policy and exercising
due diligence shall be relieved of personal responsibility for an individual security's credit risk or
market price changes, provided deviations from expectations are reported in a timely fashion and
appropriate action is taken to control adverse developments.
4.0 OBJECTIVE
The primary objectives, in priority order, of the City's investment activities shall be:
4.1 SAFETY: Safety of principal is the foremost objective of the investment program.
Investments of the City shall be undertaken in a manner that seeks to ensure the preservation of
capital in the overall portfolio. To attain this objective, diversification is required in order that
potential losses on individual securities do not exceed the income generated from the remainder of
the portfolio.
4.2 LIQUIDITY: The City's investment portfolio will remain sufficiently liquid to enable
the City to meet all operating requirements which might be reasonalbly anticipated.
4.3 RETURN ON INVESTMENTS: The City's investment portfolio shall be designed
with the objective of attaining a rate of return throughout budgetary and econmic cycles,
commensurate with the City's investment risk constraints and the cash flow characteristics of the
portfolio.
5.0 DELEGATION OF AUTHORITY: Authority to manage the City's investment
program is derived from the City's charter and reconfirmed by adoption of this policy by the City
Council. Management responsibility for the investment program is hereby delegated to the
Director of Finance who shall be responsible for all transactions undertaken. The Finance
Director may utilize appropriate staff personnel to assist in this area when necessary. Procedures
and controls to regulate the details of the investment program may be developed by the Finance
Director as needed.
6.0 CONFLICTS: Officers and employees involved in the investment process shall refrain
from personal business activity that could conflict with proper execution of the investment
program, or which could impair their ability to make impartial investment decisions. Employees
and investment officials shall disclose to the City Manager any material financial interests in
financial institutions that conduct business within this jurisdiction, and they shall further disclose
any large personal financial/investment positions that could be related to the performance of the
City, particularly with regard to the time of purchases and sales.
7.0 AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS: The Finance
Director will maintain a list of financial institutions authorized to provide investment services. In
addition, a list will also be maintained of approved security broker/dealers who are authorized to
provide investment services in the State of Texas. These may include primary dealers or regional
dealers that qualifY under Securities & Exchange Commission Rule] 5C3-1 (uniform net capital
rule). No public deposit shall be made except in a qualified public depository as established by
state law. All financial institutions and broker/dealers who desire to become qualified bidders for
investment transactions must supply the Finance Director with the following: audited financial
statement, proof of National Association of Security Dealers certification, trading resolution,
proof of state registration, completed broker/dealer questionnaire if requested, certification of
having read entity's investment policy.
An annual review of the financial condition and registrations of qualified bidders will be
conducted by the Finance Director.
A current audited financial statement is required to be on file for each financial institution and
broker/dealer in chich the City of Paris invests.
8.0 AUTHORlZED/ SUIT ABLE INVESTMENTS: The City of Paris is empowered by
statue to invest in the types of securities authorized by Chapter 2256 of the Government Code. A
copy is attached as exhibit A.
9.0 COLLATERALIZATION: Collateralization will be required on two types of
investments: certificates of deposit and repurchase (and reverse) agreements. In order to
anticipate market changes and provied a level of security for all funds, the collateralization level
will be 100% of market value of principal and accrued interest.
The City of Paris chooses to limit collateral to the extent it is limited by Article 105 Revised Civil
Statues of Texas. Collateral will always be held by an independent third party with whom the
entity has a current custodial agreement. A clearly marked evidence of ownership (safekeeping
receipt) must be supplied to the entity and retained. The right of collateral substitution is granted.
10.0 SAFEKEEPING AND CUSTODY: All security transactions. including collateral for
repurchase agreements, entered into by the City of Paris shall be conduted on a delivery-versus-
payment (DVP) basis. Securities will be held by a third party custodian designated by the Finance
Director and evidenced by safekeeping receipts.
11.0 DIVERSIFICATION: The City of Paris will diversifY its investments by security
type and institution. With the exception of obligations of the United States or its agencies and
authorized pools, no more than 50% of the City of Paris total investment portfolio will be
invested in a single financial institution with the exception of its local depository.
12.0 MAXIMUM MATURITIES: To the extent possible, the City of Paris will attempt
to match its investments with anticipated cash flow requirements. Unless matched to a specific
cash flow. the City of Paris will not directly invest in securities maturing more than 10 years from
the date of purchase. However, the City of Paris may collateralize its repurchase agreements
using longer-dated investments not to exceed 15 years to maturity.
Reserve funds may be invested in securities exceeding 10 years if the maturity of such investments
are made to coincide as nearly as practicable with the expected use of the funds.
13.0 INTERNAL CONTROL: The Finance Director shall establish an annual process of
independent review by an external auditor. This review will provide internal control by assuring
compliance with policies and procedures.
] 4.0 PERFORMANCE STANDARDS: The investment portfolio shall be designed with
the objective of obtaining a rate of return throughout budgetary and economic cycles,
commensurate with the investment risk constraints and the cash flow needs.
14.] MARKET YIELD (BENCHMARK): The City of Paris investment strategy is
active. Given this strategy, the basis used by the Finance Director to determine whether market
yields are being achieved shall be the six-month U.S. Treasury Bill and the average Fed Funds
rate.
15.0 REPORTING: The Finance Director is charged with the responsibility of including a
market report on investment activity and returns in the City of Paris' Financial Report. Reports
must include all information required by Section 2256.023 of the statute.
]6.0 INVESTMENT POLiCY ADOPTION: The City of Paris investment policy shall be
adopted by resolution of the City Council. The policy shall be reviewed annually by the City
Council and any modifications made therto must be approved by the City Council.
2256.051. Definitions.
2256.052. . Rules, Governing Investment.
2'256.053. Investment Rate of Return:
2256.054. . Designation of Investment Officer.
2256.055. . Express Authority Required.'.
2256.056. Legal Title in Investment Pool.
2256.057. .Internal Management Reports.
2256.058. Private Auditor.';', .' ;' . "...., '. "
2256.059. . Effect of Other Law.' '. '.' .., .':t"
[Sections 2256.060 to 2256.100 reserved for expansion] . .", .
. . , ,','-,' . . '; \ ,I " + . : , ' 1. : ,".',... ., \ ~ .~. : i \ . c',...",! ...' . .' ) ,; ':. ~ ';, ',. [,
SUBCHAPTER C. PAYMENT FORAND DELIYERYAND L"/-.,'il'r:
DEPOSIT OF SECURITIES PURCHASED BY STAT~ .
. i ." . .. . :- " !'" l : .' ,I .'o' ,! 0).' '" ", ~ .. \,' " ',.1 ' j" '.i r' ! ~!' ! ).
Authorized Investments; Application of"Income.
Payment for Securities Purchased'by.State. "I... ..'.',......f'; ',.i! i.!'.,'
Delivery of Securities ~urchased by State., .' . , . , (I .
Deposit of Sec'urities Purchased by' State~ ." "'. ::', :', ;;.:'i,i'i't~t,:~',! .
',', '.
. .',
" .
,'. .
;:~ \
Section
2256,001.
2256.002. .
2256.003.
2256.004.
2256.005.
. 2256.006.
2256.007.
2256.008.
2256~OO9: .
2256.010.
2256.011.
2256.012.
2256.013.
2256.014.
2256.015.
2256:01'6.
'. i.
" ,-;
, .
2256.101.
2256.102.
2256.103.
2256.104.'
, . ,~: ';
I." .
GOVEh..L",MENT: CODE.
ititle .10 ."
CHAPTER 2256; ';PUBLic FUNDS INVESTMENT"
'.
I;,
.;, 'vrhf'l'
. SUBCHAPTER A.' AUTHORIZED INVESTMENTS.
FOR GOVERNMENTAL ENTITIES
I;. ;'1 "\ ~ /' i ,<,~\
Short Title.
Definitions. .
Authority to Invest Funds.
Investment Policies.
Standard of Care.
Authorized Investments: Obligations of. or Guaranteed by, Government~~.. .
Entities.
.: Authorized Investments:. Certificates of Deposit.
Authorized Investments:.. .Repurchase Agreements.
Authoriied Investments: Bankers' Acceptances." '
Authorized Investments: CommercialPajJer. .",
Authorized Investments: Mutual Funds.
Authorized Investments: Common Trust Funds.
Bids for Common Trust Fund Investments.
Bank Unwilling to Bid; Presumption.. '.
Subchapter Cumulative. . '. . .
. Subchapter Not Applicable to Retirement Systems." .'."'" ":1(' ( ,i.'
[Sections 2256.017 to 2256.050 reserVed for expansionl." ... .','1.. .
SUBCHAPTER B. INVESTMENT OF LOCAL FUNDS; , .
"'J. :.1",,;'. \>f)
;.: f,~ :...)(
! ..
. ': '.. i ,,:, ': ,,~ :-,
..... '.1;:
" i
.' " '.....1
, '.r
'.'
"" ~ :';':
. . ~ I ~
:: ';-,;,r; !':JiLJ'-,
," '"
j' .' ,!
, .'
, !j''''
.. . ~d! ~._,
~ \ ',.' ! ; "
;.li.,
. .'
"
. ,
{; ,
'::'!!, .
i.~ L
" I).
.\".
, : . -: ' I,;',:" ,..' . <- I ' ~ '. I. . (- ..
.,"
SUBCHAPTER A.AUTHORIZED INVESTMENTS'!I,. ". .' .
.FOR GOVERNMENTAL ENTITIES ,," f:
',\. I;.' ' 1 'j.,;'
Amendment by Aets 1993, 73rd Leg., eh. 181,,~ 1 " , .'
V.T.C.A. Government Code; 9311.031(c) provides, in part, that the ,I
. repeal of a sta'tute by a code does not affect an amendment of the statute'
by the same legislature whiche'Ylacted the code and that the amendment.
is preserved and given effect as part of the code provision. ;,.'1",.01
, Section 1 of Acts i993, '73rd Leg.; ch. 181; 4f..,Aug..,30,.:1993, . 'adds;,.
. 9 5(c) to Vern'on's Ann.Civ.St. art. 842a-2 [now this subchaptet]without:,.; .
306
EXHIBIT A
., ,',"'-- .,._~...."" --.-, ~"'""",;"",~~""'-:---":"--" '.
....1...
.'
'.
.....
.',','
. 'GENERAL. GOVEPl\IMENT
'Ch.2256
reference, to the repeal of said article by Acts 1993,' 73rd Leg:,.ch.268,
9.46(1). The added 9 5(c) reads: ...'.... ........ .,. ,i, "
.", ';The c'ountytdX'ass~s'sor-c'Ollector maYilseelectronic means' to'tr~ns~
fer or invest ad valorem taxes collected' on behalf of the county, as' .Jell
as,pursuant to a contract with, other taxing units."
.... .
, ,
Amendment by Acts 1993, 73rd Leg., ch. 858, !l 1
V:T.C.A. Government Code, 9 3i 1.031 (c) p;ovides,in par't~ that the
repeal of a statute by a code does not affect an amendment of the statute
by the same legislature which enacted the code and that the amendment
is preserved and . given effect as part of the code provision; .. " , ,
Section 1 of Acts 1993, 73rd Leg.';ch. 858, ~ff. June 18;'1993, adds'
9 2(e) toVernon'sAnn.Civ.St: art. B42a-'-2 [now this subchapter)without
reference'to the repeal of said article by ACts 1993, 73rd Leg:; 6h: 268,
9 46(1). The added 9 2(e) reads: .' ,
.' "!n addition to investments a~thorized by other law, the state; a
department, commission, board, office,' or 'any other entity' 'of state'
government or, an en~ity, listed in SubsecticJ1:1 (a) of this section may
irives! in bonds issued, assilmed, or guaranteed by the State of Israel.'~
",. ,.. .
Amendment by Acts 1993, 73rd Leg." ch. 946, !l 1 '.'
V.T.C.A, Government Cod~, 9 311.031 (d) provides, hi part,that'the
repeal of ci statute by a 'todedoes' not affect 'anamendmeht of thi'stdtide'
by the same legislature which enaCted the code and that the amehdifzh'll'
is preserved and given effect as part of'the'cod~"pr6visioii: ". .'",',.
.:~ ~.' \ ' ': ,.
..,.'
Section 1 of Acts 1993, 73rd Leg., ch. 946, eff. Aug. 30, 1993, amends
section 2 of Vernon's Ann.Civ.St.' art. 842a:"'2 [now' this subchapter]
without reference to the repeal of said article by Acts 1993, 73rd Leg.;ch.
268, 9 46(1). As so amended, section 2 .reads: .,': ". .
"(a) An incorporated city or town, a county, a, public school district, a
district or authority created under Article III, Section 52(b)(1)or (2), or,
Article XVI, Section 59, of the Texas Constitution, an institution .of
higher education as defined by Section 61.003 of the EducationCcJde; a
hospital district, a fresh water supply district, or any nonprofit corpora-
tion or public funds investmen't pool created under Chapter 791; GOVern-
ment Code, acting on behalfofany of those entities 'may, iriliccordimce'
with this Act, purchase, sell, and invest its funds, and funds under. its
c~ntroli"!thefoll6Wing: " .:',.....,., '"" ,."'" . '",;,:"
"(1) obligations of the 'United Stath dr'itsagenciesand instrum'enta'li-
ties'," ' ,', . I;. ,. . '., , '" ,',' 'j t",
,
, . . .' . , \ '~ '(' , . . . \ \ ,I I
"(2) direct obligations of the State of Texas,or its, agencie!i: '..' ,
~'(3) other obligations, theprincipal:of.and interest' on which,are
unconditionally guaranteed or, insured bY,>fjr;,bai::.ked.,by the full faith:and
credit:.:,of,,\.the.:State.o{.,TeXas 01;, the,..unit'ed ,States',.or., its;"agericies,ltlnd,
it1~trum~ntti#tle$/~.~', \'.> :\.,l\Y,'1 ' ....~::L'd \ 1 . ,,:::;"\'L.~\. \: ~:..,:", . /~.\.:-.".~,' r;\'I'.:n~:~' ,\'A~\.. .
307.
'." .
. ..' .:. .'
GUVEl<NMhNT,:, \,;Uu.c.!, "
Title .101
,..,~'(4).obligations 'of states, agencies, counties, citie~, and other political .
subdivisions of any state havingbeen ratedastd':inve'stmentquality by a'.,
nationally recognized investment, rating firm and having received" a
reitlng' of not less thanA oritsequivalen't;": ' "',' ;', ,
,,' I \ , .. ' '",. , .',: " . . '. i'. ., ; , '- \ ~'. _ , ..., _' ' . ' . , . '1'1 ,',' .... . . . . " . " '. ',' .
"(5) certificates of deposit o'issuedby stdte arid national, banks domi-
ciled in this state that are:
. ' .' .. , .' ' .. ' , . . " , ~
OrA) guaranteed or insured, by: the.Federai Deposit Insurance Corpora-
, . ",' .
tion,or its successor; or" '.' .' ' ,,' ,
"(B) secured by obligations that are described by.subdivisions 0)-:-(4)
of this subsection, which are intended to include all direct federal agency ,
, or instrumentality issued mortgage backed securities that have a market
,value of not less than the principal ,amoimt 'of the certificates orih'dny
other'manner arid amount provided by law fordliposits of the investing
entities;' ' " , , , " ' " , , " .,,'. ' "
,,; ,"
,:'(6), certificates of de 'posit issued by savings and loan, ,associations
,domicUed in thisstate'that are: " '.',' :,: ,.."" '" ,
" .1,. "...\ '. .... " .........,...,
'''(A) guaranteed or insured by"the Federal'Savings' andLoan'Irisur~'
ante 'Corporatibn, or its s~icce'ssor; or ',' ' , .' , ' ,
I,
"(B) secured by obligations that are described by Subdivisions (1}-(4)
of this subsection, which are inteYlded, to inClude all direct federal agency
or,instrimientality issuedrriortgage backed securities, that havea"market.
valuepf not less ,than ,ihepriricip'al, amountoftne c"ertificaieso{ 1n.Oiiny, '
other in'anneran4' amount provJded bY law for:,dejJosiis drth~ i,nve~ti!"g
entities; , , .
\. . ',' ,.' ,. .
:,."(?)prime domestic banke;'siacceptdnc~s; " :'" ,. "~'I,: "
"(8) commercial paperwitn' a stated mati/rityof 270 days' 'dr less from'
the,date of its issuance thateither:": ,,':':,', " :'" ;,,;, :.,',",
:, "(A) is rated no([ess thariA~l; P-l; or the equivalent by at least tWo
nationallyrecog~izedcredit'r'atingagencies; 'or" , ,,:, ',,',
.', " .'" . I I .'. ' '.' . . '. . ... . , .,; , ~ ' :' ': -,,' ,', ,', "
, ~'(B) is rated at least . A-I,P-l, ,or .the' equivalent by at least oYfe,
\ natio,!ally" recognized, credit rating; agency ,and is fully, secured, by ,an
irrevocable letter,of credit issued, by a bank organized and,. existing under'
the laws of the United States or, any state, thereof; and ,',,',' ' ,
" : .", 1"
, ''(9) fully c6Zlateralii~d repurchi:ise agreements having a definedterrYti-
nation date, secured by obligations described by'Subdivision (1) of this
subsection, pledged to, the, political, entity, and deposited 'with a: third
party selected and approved by the political entity, and placed through ,a
primary government securities dealer, as defined by the Federal ReserVe,
or a bank domiciled in this 'state. ' '
, "(b) In addition to theirivestments described by Subsection ,(a) of this
section, an'. institution of high en education ,as defined bY'Section'oAD03
bf.'theBducatiori Code'mdy,'in',:'accordance ,with" this" Act/purchase,1 ~ell,:
,', and, invest its funds , and funds under its; control" in,~lthbfollowirig:! '
30'8',
.';.
. '......,... ",'-"~"""~-.-'- .....:.:--..,.:.'.':'~...........-P'~--.--~-.
GENERAL GOVERNMENT
.Ch. 2256
,.."(1) cash management and [IXed incomefunds spunsored by organiza-,
tions exempt from federal income taxation under Section 501 (f), Internal" ,,' ,
Revenue Code of 1986 (26 U.S.C.'Section 501 (f)), and its subsequent,
amendments;' .'
'; "(2) negotiable, certificates of deposit issued by a bank that has a
certificate of deposit rating of at least] or the equivalent by anationally ,
recognized credit, rating agency or that is associated with a, holding
company having a commercial paper rating of at least A-I, P-I, or the
equivalent by a nationally recognized credit rating agency;. and
'''(3) corporate bonds, debentures, or similar debt obligations rated by a
,nationally recognized investment rating firm in one of the two highest
long-term rating categories, without regard to gradations' within" th6s~
categories
, '
',":(c) In this section: ..
',"(1) "Bond proceeds" includes but is not lImited to proceeds fro'm the
selie' o(bonds and reserves and funds maintained for debt serviCe pur~
, ' - . , . " ,.' " ,. ':"
poses.
'''(2) "Prime domestic bankers' acceptances" means a bankers' accep-
tance with a stated maturity of 270 daysot 'less' from the date of'its
issuance that will be, in accordance with its terms, liquidated in full at
maturity; that is eligible for collateral for borrowing from, a Federal
Reserve Bank, and that is accepted by a' bank organizedand,existing.,
under the 'laws of the United States or any state, the short-term obli-
gations of which (or of a bank holdingcompanyofwhiChthe'barik is the
largest subsidiary) are rated at least A-I; P-I, or theequiVi.Zlent"byatlea:s~
one nationally recognized credit rating agency.
"(3) "Repurchase agreement" means a simultaneous agreement ,to
buy, hold for a specified time, and then sell back at a future 'date,
obligations described by Subsection (aX 1) of this section, ,the principal
and interest of which are guaranteed by the United States or any of its
agencies, in market value of not less than the principal amount of the
funds disbursed. The term' includes 'direct security repurchase agree-
ments and reverse security repurchase ,agreements.
"...' ' " . " -','
"(4) "Public funds investment pool" means an entity created to invest,
public funds jointly on behalf of the entities that participate in the pool
and whose investment 'objeCtives in order of priority are: first, safety of '
principell; second, liquidity; and third, income. " "
'. \. " . .,' , .,'
"(d) In addition to the investments described by Subsection (a) of this ,
section, an entity listed in that subsection may, in accordance with this
Act, purchase, sell, and invest its fimds and funds under its contr'ol'in a
no-load money. market mutual fund that is regulated by the federal
Securities and Exchange. Commission with a dollar-wldghted average'
suited., maturity of 90 days or less and whose ,investment objectives
include seeking to maintain a stable net asset value of $1 pershate.' No
entity listed in Subsection (a) of this, section is authorized by ihis:Act'to
, investdn the,~aggregate more, than-SO percent of its ,monthly., average' fund.
", balance,' excluding bond proceeds"in,money ,market.~mutual'.funds,'l1e""
, 30~
. - '.~H,_~' ....,.,,' '-.-, ":""~ '.' ....-.. ""'7"" ',' .. '-~-'.~ ", '. ". "'.'.'
.' :,.." .,...~,., .'"'' '",'.~'" .', :":...:....~.~:.~~':":...,-'..:'""?:'"~:--.-";7':;-..~~ ..'
't:
:....,.,'.
'" GOVERNMENT CODEi ,
,Title 10' "
scribed in this subsection or to invest its funds or ,funds'imder:its
control; excluding bond pr'oceeds,jn anyone money market,mutualfund'
in an amount,that exceeds 10 percent of the total assets of the money,
market mutual fund.
O( e) An entity' listed in Subsection (a) of this section may: invest :its
funds and fundsun'der its control in an eligible public ftmds investment'
pool if the gdverningbody of the entity by resolution authorizes invest-
ment in the particular pool. A public funds investment pool may invest
the funds 'it receives from entities listed in SubsectionJa)'orthis section-
in any investment described by that subsection. A public funds invest-
'ment pool shall. establish an advisory board composed of participanis ,in
the pool and other persons who are qualified to advise the pool. ' "
"(fJ To become eligible to receive funds from and invest fundsori
behalf of an entity listed in Subsection (a) of this section, a public funds
investment pool must furnish to the chief financial officer or other
authonzed'repres(mtaiive 'ofth'e entityarl offering circular ','or 'other
sirriilar'disi::losureiizstnllnent'thizt contaIns,' at Ii minimum;"th'e ''followc''
ing information: ','"'"
. . . .
,'''(j) the types of investments in wliich money is 'allowed ''to be invest-
d' \' \, , " r . , '1,-,
e " _ " " , ' .,.. .
'. '. \ " , ~ '.' \".", \ \:, ': : .,' , ,"" \ ~' i': ,..' '". '\' ~ I, _; .\ ; ~, I, .., !, ;
, '''('2)' the maxim~m 'av~rage dollar~weighted maturity allowe'd, based. on'
the:'st'dted maiurity date, 0[. the pool;., ""i',', ,"",.:,y, .'"
- " ',",', \ J 1 ", ':' . . \ ""',' "', ''-:', .,: ':, ,', ~ .', " ' . .' . '. . . ; .,1\. ',".-' ,,: ~ I,' " .", "'~;.' \ \ 'j \ .
, ,.."(3)the"maximum stated maturity date any investment:security within, " '
the portfolio ,may have;;" "', " ,'<:''', Ii:'"
"(4) the objectives of the pooli ' '''.., , ',;1:, '
i "(5) th~;ize of thq;601;' ",;'
" , , ; '" . . , ' . ",' ~\ t"" .
"-"( 6) the ndmes of the members 'of the advisory bOard of ihepodl'and
the datestheir't~rins'"expire; " " ",,':"',~ .',t', '
" \"., ", '..J I ., ", """';':"" ,..',,',, ,'....
"(7) the custodian bank that wilZ,safekeep the pool's assets;", ,.',
"(8) whether the intent' of the pool is to maintain a net ass~tvahie of
one dolZarandthe risk of market price fluctuation;, ': "
'" ~. ., .",' .' '. ; "'. ' . .,.. " .', " ' . \.' I ' , '.' .' \
" "(9)' whether the only source of payment is the assets of the pool at'
" market value 'or whether there is a secondary sOUrce. ofpafim'ent,.such'as:
insurance or guarantees; and a descnption of the secondary source ',of
, 1 ,.\ ,
payment. ", ,',.,,','. ",' '."
", "", : '., ~' "'.; '.1',.'.:.-"" i.' " " ':. '.. ." ".. ." ... '.'; i : '. '; .',:, , \-.".)"\:/ ."....,.
. ':(10) ,the name., and, address of the independent auditor of the pool; .
. '; . '. '
'''(11) the requ'irdmehts to be satisfied foran eniitytodeposii 'fz-hias Iii
and Withdraw funds from the pool and any de'adlines.or other operating
policies reqiiired for 'the entity to' invest funds in and withdrczw funds
fromthepool;'an,1,"',' .....~"\. .,.'..,. '."".,;
.; ,,~t(J 2) c the:performance history', of .the pool,' including:yield, ',average',
do'llar-weighted. 'matunties; 'and 'expense. 'ratios: """" \ ','.' '.\'",',h;.~,,;;.~'),.:\,h'J '
. 3'10"
.. ....'.......- .......,-"-...',.:.,-..,-
""'. .... ".: '~"""'''''.-:7''-,-'''''':-:'-'-':'':'':;'' .f--, .-; ...,...
,-.:.....:.:..,'.,..,~.":'~.,:...'~.,"-:"""";.,~"':..........
" '
". .,'
...'-"
"".-.' .'
'GENERAL GOVERNMENT
:Ch, 2256
, "(g) To maintam eligibility to receive funds from and invest funds on
'\' behalfofan entity listed in Subsection (a) of this section, a public funds."
investment pool. 'must furnish to the chief financial 'officer or other
" authorized representative of the entity: ',' .
.' "(1) investment transaction confirmations; and
, . " "(2) a monthly report that contains, at, a minimum,. the following "
infor;na~ion:
)..)/\, -,'" .' ";1:, I', ;, ..:.. ' f. . I _,' :, :.... ,"
II {.':(A) the types and percentage breakdown of securities in:which,the, , :
'1IPpol,is invested; , .' , " , ,', ,:, . ,i", 'f,
/i0 ,'/'(B). the current average ddllar-weigh'tedmaturity, based on the stated," " '
maturity date, of the pool;
"(C) the current percentage of the pool's portfolio in investments that
have stated maturities of greater than one year;
::: f'~}
"(D) the carrying value versus themarlcet value of the pool's portfolio,
using amortized cost valuation;' . .,
.I 1,", ',J ",", " , .
"(E) the size of the pool; ,
, "(F) the number of participants in the pool;..
"(G) the custodian bank that is safekeeping the assets of the: pool;
iv::, "(H)' a listing of daily transaction activity 'ofthe entity participating:,
in the pool; , " ' ',':"..'
',' ''''':':"1''(1) thi/yield and expense 'ratio of'the poOl;' , " t
'. (II) \i,:""-I'-" . ",I " . '"",,.. ,; ',,'1 ",-(I
" :'(jj the portfolio managers of the pool; an,d'
"(K) any changes or add~nda 'lathe offering circular,"
~ 2256.001. Short Title
, This subchapter may be cited as the Public Funds Investment Act.,'
"(r::' :"',1, I " " .
Add~d by Acts 1993, 73rd Leg., ch.268, 9 1, efE. Sept. I, 1993.
~ 2256.002
"
, Historical and Statutory Notes
,.., . "
:':.:','::.'.:, ',..'-:
. .,....
. ..' .
. ..,'
-, ......
, .
. i Prior Laws:
Acts 1987, 70th Leg., ch. 889.
Vernon's Ann.Civ.SI. art. 842a-2, S 1.
, .1
',< .
,....~, 2256.002.
:' ,I.,,"" ..
" '.
,
Definitions.
.'
.' ....
: \.
In this subchapter:' ,
H":'cd' ,iln~tittlti6~ bf highet cdudati6i1/ihas' the nieariing 'assigne'a 'bY"S~c~ion.
. . I. .' '. .,;:, I, '~n j
, 61.003, EducatIOn Code.
"" " :.: I
" 1: (2) "School'district" rneans a public school district. ..; ','.
. ',", :'>",: II,'; ", .,'" ~<\.; \ '. ,"" '_:' .' ,.:,' , ' ," -:.' '..;' , ,", _!. \ (.,.)
.:.iAadedby, Acts 1993', 73rd'Leg., ch.268, S I,eff. Sept. 1, 1993':'.::"':;';;")1<',1",,(1..)
'., 3UQ ,
_ "," ....' ,...... _'", .',.,. ..~,.:.,.;'.:...~.,.. ":', ,., -, . ...;";_,_'. '" '..,";....":. ..:.:".~,., '~'..:.':.~."~ ,-:.,," "',.; . ,"_'_"..'" _... :......~.....,~..~_,...~._.,.,_';..~~~.,.~.-:-r.~_.,-"..
"'. '-
"
. ~.. ,_." ' i
,,',.,
'....
S 2256.002
" .......
GOVERNMENT:CODE\.' .
TltleJO, < '
Historical and Statutory Notes , " " ,;. ".',
,. Acts 1989, 71st l.eg.,ch. 693,S 4:' ....:,
Acts 1989, 71stLeg., ch..7s0,S"l,.,.....,:.\\
Vernon's Ann.Civ.St. art. 842a-2, S 2(a).
Prior Laws:
Acts 1987, 70th Leg., ch.' 889. ,.
Acts 1989, 71st Leg., ch. 39, S 1.
Acts 1989, 71st Leg., oh. 628, S 1.
" \
~ 2256.003. Authority to Invest Funds
Each governing body of the following entities rnay purchase, sell, and invest
its funds and funds under its control in investrnents au'thorized under this
subchapter in cornpliance with investment policies approved by the governing
body' and accordihgto the standard of care prescribed by, Section 1256.005:
(1) a rnunidpality; .' ,.','... ,'" :'\..."
(2) 'il County;
(3) a school district;
(4Y'a district or authority created under:
(A) Article III, Section 52(b)(l) or (2), of the Texas Consi1tutiori';' or'
(B) Article XVI. Section 59, of the Texas Constitution;
(5)' an institution of higher education;
(6) a hospital district;
(7); a nonprofit ,corporation acting on behalf of an entity listed in Subdivi-
sions(1)through (6); or '" "', ",
(8) a public funds investrnent pool .created under Chapter 791, acting on
behalf of a combination of entities listed in Subdivisions (1) through (6).
, ',.'.' "';. 'I' 'I I, i
Added by Acts 1993, 73rd Leg., ch. 268, 9 1, err. Sept. 1, 1993. ", '.
. )".'.
..'"
'\".
, ;'
Historical and Statutory Notes " ',,":. .;,,,
'Acts 1989, 71st Leg., ch. 693, S 4.
Acts 1989,:71st Leg., ch. 750,S'..J:, ,. .",::
Vernon's Ann.Civ.St. art. 842a-2', SS 2(a),
:s(a).. ',',,:..1 ;" ' "
Prior Laws:
Acts 1987, 70th Leg., ch. 889.
Acts 1989, 71st Leg., ch. 39, S 1.
Acts 1989,.71st Leg., ch, 628; SS 1,'2.,'
~'2256.004. Investment Policies
. ,;.:..,J,
(a) The investrnent policies rnust: ",' " , ' . "
(1) be written;
'(2) primarily ernphasize safety of principal and liquidity; and , ". " '
(3) address invcstrnent diversification, yield, and maturity and the':qi.;~litY'
and capability of investrnent rnanagernent. ','. ,.' ' , '
" (b) The investment policies rnay provide, that bidsforcer'tificates of, deposit
,[ "';11'1 ".,..' ,.1" "" .' ',;,1, ',",' ,", 'I' I'" ," .,' ,'''1..,.; " 1-j",',':'J.,'rll \1'
' b'" '1""IOt','0 .,'" ,I., /."., "', .1,,' ",.,., J. "I \'.'.... '." "'.1",',,1 ....1 01 ...., ""' .,1.,:" ,_. ._,,'
') e S~l)C.~;a~I~;' ".' , . ':i", ; ",.;;,; ,.,;Lil.,' ,';.:;;;):[(,:
'\'(2) in \.Vriifng;.' "',::>.,: (",::i"" ,", .. :'''1 "I", ,:, i"",i.\,~" (~',1
.(3):;eIe~ifoniCally;.(or'l. . ;'1';\.::'1, ,\' " , .,1, , "',' r:;:\ '>;<"';'%'I'J:i,.,~!;(i:i~lhl;1\i '
, "31',2
...,- .
','
. .;..'.....'
",'.
.... .
.
, ,
....'. .
'":..",,..' '.'.
. ....
'.:..' '-""".
,-....
.;.-.....-...
"". ..
", ,"
,
, " ',,'. ' .'.,'
GENERAL GOVF~NMENT
.Ch. ,2256
~.2256:006'
,
(4) in any cornbination of thosernethods.
Added by Acts 1993, 73rd Leg., ch. 268, S I, efE. Sept. I, 1993.
i','-
",_li ,'I';
", .
" ' ~ ;. i :'. ,'.,..
PrIor Laws: .
,Acts 1987, 70th Leg., ch.889.
:, ' H1sto~ical arid Stat'utory Notes""" ",.;:; .',
" ,'I ,Acts 1989, 71stLeg., ch. 628,,~'2":I; "J f..
i Ve~on:s A~n:Civ.St. .a~. 8~2~~2,} ,5',:1'\'!'
. - ""
~ 2256.005. Standard of Care
Investrnents shall be rnade with judgrnent and care, under prevailing circuITI-
stances, that a person of pmdence; discretion,' and intelligence would exercise
. in the rilimagernent of. the person's own 'affairs; not for speculation,but ,for, ','
investment, considering the probable safety of capital and the probable incorne :,"
to be derived. ' ,.',,'
Added bY Acts 1993, 73rd Leg:,' ch. 268,steff.'Sep't. l,lcj~3:
ii' ,'..' I"
i' ;' i: ;' ,.'; " : .' : I i I ~...i
't'
, "Historical and Statutory Notes
, .; ,~
i'
..,1, J
PrIor Laws:
Acts 1987, 70th Leg., tho 889., , '
Vernon's Ann.Civ.St. art. 842a-2, ~ 4.
, , "
I;: -.,
,',", '
.',','
,',
, , "
Obligations of,' or Gua~anteed by, ,,;', '
'~ 2256.006~ "Authorized Investments:
Governmental Entities
The following are authorized investrnents under this subchapter:.:,:
(1) obligations of the United States oritsinstmrnentalities; '. "
(2) direct obligations of this state or its agencies;, .. ,
(3) collateralized rnortgage obligations directly issued ,by a federal agency: '
or instmrnentality of the United States, the, underlying security for which is '
guaranteed by an agency or lnstrurnentality of the U'nlled' States;' , ' .'
.' ,.' '" ,,',., ',' .
(4) other obligations, the prlnciparandinterest of which are unconditional- '
lyguaranteed or insured by this state or the'UnllcdStates :6t its' in~trilIuez\tal- '
ities; and .', ,"" , ,'.i" ','"
(5) obligations of states,' agencies, 'counties, cities, ' 'and ()the~ 'pdlitical "
slibdiVisions of any state rated' as: to ' investrh~n:f quality i bY'; a': nationallY' ' '
recognized investrnent rating firm not less' thart A or its' equivalent. I .' >I ',i,'
': ., . '" ,," " 1,: I ,';,.! l.: I' ,,"
Added by,Acts 1993, 73rd Leg., ch.: 268, s .1, err. Sept. I, 1993.. Amended by Acts ,1,993,
73rdLeg.:ch.820,s2,efr.,Sej:lt.l,19~3,,:, I, ",', (, I""",."""
'''Historical and Statutory Notes,"
Section 3(c) of the 1993 amendatory act pro- Prior , Laws:
vides: .. ," ,'" ,
Acts 1987, 70th Leg., ch. 889.
"If S.B. No. 248, Acts of the 73ro Legislature. ' " ,
Regular Session"1993; [ch:'268] does not finally Acts 1989, 71sl. ,L~g:!. ,ch., ,39;,;~,,~: ,-,;',: I "d'",'
pass or. is not'approved by the govemor"Section Acts 1989, 71~tLeg",ch};28,,~;L'i:(': "I'i("
2 of this Act has no effect...' Acts 1989" 7,lstLeg./ ch.;\693,,.~,'4';'il'."'1 """ii,
:; .,.'
I. ,t,j.
31;3
',,', "" ::'.'
~;2256~006
.: '," GOVERNMENT>CODE\ .'
'.Title 10\ .....
'Acts 1989, 71st Leg., ch. 750, S.1. .' ....,..,
Vernon's Ann.Civ.St. art. 842a-2, 9 2(a). .
...."(l'.:_.;:.:..-,'.l,'
:,J \..,:.,',:1': ':'jll,:i._, '.,/,r(:
, to.' .
,'.\; .),:..:.} ': ;.'
'.'
'!\
9 2256.007. Authorized Investments: Certifieat~s of Deposit
A certificate of deposit is an authorized investment under this subchapter if
the certificate of deposit is issued by a state or national bank domiCiled in this
state or a savings and loan association domiciled in this state and is:
(1) guaranteed or insured by the Federal Deposit Insurance Corporation or
its successor;
. (2) secured by obligations that are described:by, Section 2256:006. incl~d~
, ing rnortgage backed securities directly issued by a'federal. agency. o~,instru-;
rnentality that have a market value of not less. than the principal amount of
the certificates; or . '"
\ ','! 1..;(, .;': '.
(3)" secured in 'any other manner and amount provided.by law for deposits
of the investing entity. . "', , '. ".,' . ," ,'.'. ." " . ,",
Added by Acts 1993, 73rd Leg., ch.268; 's i eff: Sept. 1. '1993.
1'';-.
. ~, ...'
...... .
Prior Laws:
Acts 1987, 70th Leg., ch. 889.
Acts 1989, 71st Leg., ch.39, 9 1. .
'Acts'J989;'71st Leg.~ch. '628,91::'
Historical ,and Statutory Notes' '. !I:
Acts 1989, 71s;i.eg:,'ch. 693; ~';4: "".,
Acts 1989,. 71st Leg., ch. 750, 9 1.
Vernon's Ann.Civ.St..art..842a-;2, 9 2(a)., . "
:, ". ." '.. '.. , :.: ! '; ,,:,.-,.:!;. '", '. ,.,1" .
',"-,.'
.,', .....
, !
.
'" ;.
.....
~ 2256.008. 'Atithorized Investments:;RepurehaseAgreements. '.
(a) A fully collatbi-aiized rc'pui.-chasc agrc~mentis' ani arlthorlzedirivestritent
under this subchapter if the ,repurchase agreernent: Ci", '. ...
. (1) has a definedterrnination :date; i.
(:2.) is secur~d by obligati6ns d~scribedby Seddon 2256.0'0'6(1); '.' . .
. .'., , ;.' \ .' , , , . . . ';':', I . . I,' ' ! . ... '. ' .: ; . ,_~ 1
(3) is pledged with a third party selected or approved by the entity; .and
. ,..,:'" .... '.' .' ,. ", '. ,.: -' .:. . "It , . '. 'J . ,', . .' '
, ,'(4) is placed throttgh a.primary governrnentseeurities dealer, as .defined by
'ihcFederal Reserve, or a bank domiciled in this .state. " .', ': ,... .
",' " .
,'(b) In this, section, '.'repurchase agreement" rneans a simultaneous agree-
ment to buy, hold far.a specifiedtitrie, and sell back ata future datc'obligations
described by Section2256.006(l), .the principal. and interest of which are
guaranteed by theUnitedStat~s in market value of not less than the prinCipal
. amount of thdundsdisbi.1rsed. ,The terrn .indudesa direct security repurchase
agreernent and a reverse security repurchase agre'errient ' '., ,
; i.......-.
'.', '
Added by Aets 1993, 73rd Leg.,ch. 268, S l,df. Sept!. 1993.
',:':',
I-listoricaland Statutory Notes . '. , ". ."
. ~ ; " ,
Prior Laws:' ,'" .Acts' 1989, 7.1st Leg.,ch.693;9 4;, :1.' ,;,.,
Acts 1987,. 70th'teg~;ch.; 88~~' \. ',:: ,'Acts 1989,>71st,Legi;'chi~ 750" 9,1.<..;' ".I,,,;',~,;
Acts 1989,:7.1st'Leg:,;'ch;"~9,'9: i. ..::;., .. uVern'on's'Ann.Civ.St;.:.art::842a'-2;':9 2(a)j(c)::i
Acts~ 1989/7.1sf;Leg:,';',j;:h."''628/ 9' l.,.~,..l: I. . ,C)';d~'_:, 011 ;u,:d' ~~I}'. :~ldj ,1(;, \
J1W
.' ,......-- - ~"...' ,~..."....,........ ''''---'...' .., .' ,.._~ ~.".;., ~..., :. . . '- ,.-.,' ,-. '-'. .. .. "'; :.. . - . - .'.- . ., :.: ':- .,:;
-:-.-:-'..r.-....,...~,.._
,..,'........, :",-'" ..~.- '. ., .,~' ..~-'": :'.T":"'" -:-0 ..-_,.._.-.;""_....~.:-.... .
:--~,,'.
,.
. .:.. . - '. '
.,... .
'. .
, .
,..'
~ 2256~01r'
GENERAL GOVEr \lENT
Ch. 2256
~,2256.009. Authorized Investments: Bankers' Acceptances,. ,
A bankers' acceptance is an authorized investrnent tinder this ;ubchapter' if '
, the bankers' acceptance: .
(1) has a stated rnaturity of 270 days or fewer from the date 'of its' issuance;
(2) will be, in accordance With its terms. liquidated in full at i:riatu'dty; ,',...
(3) is eligible for collateral for borrowing frorn a Federal, ReserVc:Bank; ,
'and '
(4) is accept~d by a bank organized and existing under the laws of the
"United States or any state, if the short-term obligatio'ns of the bank, or of a
, bank holding company of which the bank is the largest subsidiary, are ra.ted
. 'nbi' less 'thariA~ 1 orP-l or ari equivalent rating by at lea.st 6ne' ~'Uitiorhlly
recognized credit rating agency. ", ""::"."":":-;":'~,"'"
i Added by Acts 1993, 73rd Leg., ch;' 268, S '1, ert Sept. I, 15>93.:.
./
Historical and Statutory' Notes
," . Acts 1989, 71stLeg., ch. 693,~, 4:.'" "".,
Acts 1989, 71stLeg'.;ch. 750,'09:1.-:', :"!~!
Vernon's . Ann.Civ.St. art. 842a:"'2, '~ 2(a);' ec).
Prior Laws:
" Acts 1987, 70thLeg.;ch. 889.
Acts 1989, 71st Leg., ch. 39, ~ 1.
Acts 1989, 71st Leg" ch, 628, ~ 1.
~,2256.010. Authorized Investments: Commercial Paper
, '
, .
, ,Commerchll paper is an authorized investrnent under this subchapter if the
commercial paper: .' ," .. ".
I'i' -.' .". ' - . " ." . ...'
,: '(1) has a stated maturity of 270 days or fewedrorn the date,of its issuance;
and
(2) is rated not less' than A-lor P-I or an equivalent rating by at least:
(A) two nationally recognized credit rating agencies; or
(B) one nationally recognized credit rating agency and is fully secun~dby
: ;, an. irrevocable letter of credit issuedby, a,bank, organized, and existing:
r",under the' laws ,of the .United States or, any state" ", " . '"': ' ',' ";",;
Added by Acts 1993, 73rdLeg., ch.,268, s I, err..Sept. I, 1993. .,..,.,..1;
';1,':-
Historical ~ndStaiutory Notes ' " " .
'Ai:ts'1989;71~tLeg.;ch. 693, !H>
Acts 1989, 71st Leg., ch.. 750, ~ 1;,:
Vernon's Ann.Civ.St. art. 842a-2,. ~ 2(a).
. 1.'
"
Prior' Law~:
. . Acts 1987, 70th Leg., ch. 889.
:',1 ,Acts 1989,71stLeg., ch. 39, 9 1.
"'Acts 1989; 71st Leg., ch: 628, 9 1.
." I. .'
'..,
I,. ,.
~ 2256.011. 'Authorized Investments: , Mutual Funds. '
Ij" t 1
". ,.,,'
..!
(a) A no-load money market mutual fund is an authorized investment'imder
this subchapterjfthe,mutual fund: ':, ;'!I :'../,!;
(1) is registered with the Securities and Exchange Cornrnission;,' I)'io,(:
'",
'! (2) has a dollar-weighted average portfolio maturityof.'120;days:orJe'wer;'"
315
"~"''''',u__._..~....._....",....._.".._ . ... ...._. _""
.',,t'.
, ,
"".' ..
" .
,.
'.... .', .....
:-::."
I'"
, ,
,d. ','
. . :;.,' ..<"
.'
::,'::>:...:',,:
':.',
~ 2256.01 r
G TERNMENT,'CODE' .',
. Title ,,1'0' .' '
(3) is inve,sted '; exclusively in' obligations described by Sections' 2256.006'
,; through2256.010; and
" ' ,.;. ,....\ .!.'" J,. ". ., '..,.'.. ...
(4) includes in its investment objectives the maintenance of a stable;net
'asset value .of $1 for each share.
. (b) An entity is not authorized by this section to:
. (1) invest In the aggregate more than 80 percent of its monthly average
fund balance, excluding bond proceeds and reserves and other funds held for
debt service, in mone~ rnarket mutual funds described in Subsection (a); or
,(2) invest its fu~ds or fun'ds under its control, excluding bond proceeds and
f, reserves imd other funds held for debt ,service, in any, one money,.: market
',mutual fund 'in, an arnount that exc'ecds 10 percent of thei:~tal,assetso( the
. ." .'. .,,' '..' . "'. .': .... _..J ',.,
money market rnutual fund. ',;.';c" ,::.,
, Addedby Acts 1993, 73r~ Leg., ch. 268, S I, eff. Sept. I, 1993..,
'(,i h . "
Historical and Statutory, Not~s
PrlorLaws"",,, ,:/,'" ' Acts 1991. 72nd Leg:, ch. 732,9 1.""-"":"" .'
Acts 1987, 70th Leg.,'ch: 889.,. ,',', Vernon's Ann.Civ.St. art., 842a-2, 9,2(c), (d):
:^,ct~,1989,,71~t;Leg:~',ch.628',9 1. " . '" : ::, :.
, . ~,.
".
';j;. ...
Notes of DeCisions
invest their funds and funds under their control
in Imitual 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 mutu-
"al fund than section 2(d) pehnits, Op:Atty:Gen.
1993, No. DM-202. . ,~,,;
Type of 'securities 1
. I ~ i ~ ;' ," .: " ~, "
1. Type of securities
The Public Funds Investment Act, V,T.C.S.
anicle ',842ii-2:' auihoriies 'Cities, counties,' and
certain other public and nonprofit entities to
~ 225~.012. Authorized Investments: Common Trust Funds
, '
,,(~) A qualified common trust fund is' an authorized investrnent for the local
funds' of ~m'instittttion' cif higher education and for the 'boncFproceeds::and
reserves and other funds held for'debt serVice of a rnunicipality; 'c6t1nty;'school
district, or navigation 'distriCt if the'cothrnon'lrust fund: . .' ,,'~," ',.:;!:/
(l) is owned or administered, by a bank dornicil,~d in this state;
. (2) consists exclusively of assets that are obligations described by Sections,
2256.006 through 2256.010; '" " ,'I .
. _ .: , ' . . ' '. '. ' , ~ " .' ,'. " . , :' I 1
(3)cornplieswiihthe Internal' Revenue Code, of1986and.,applicaqle
federal regulations governing the investrnent of bond proceeds and reserves,
'mid other funds held for debt service;' and .' , .' . ,
. (4) 'rneets the cash ~>jjo\t Teqtii~emenis'and'the "investhie~t ~~:~ds'~ ~fth~'
.;,politicaL,subdivision:orinstitution. ''''''''''''''''. .' ".,. . I' :,.',.',",:;. (, it:: ,
(b) Inthis section, ,"comrnon trust fund" ihdudes' a"comparable' irii.reMmehfJ,
device:" ';I,()i;,::i:f,n'j'} 'I,""':""; ';":! , ;,",:' . ').:irl::"'r ,',:':'1::\':,'-"( ;,:;, (I) ,
. '\i'\';' .; ,,' . ' ".' ',' ." -) ".,' ,I'
Added;byiACt~:1993,i73rd);'eg!reh.,26B:iSll~ erE: Sept.lli:1'993,"';i,;,iof,.~ ;~L,d(\), :.'
31'6 .
',.' p ,
,..... ..." ....
'.'. ; 'GENERAL: GOVEID' 'ENT
',:'CIi. .2256
S2256';014':
" .
Historical. and statutory Notes
Acts 1989, 71st Leg., ch. 750, 9 1.."...... ,,","
Vernon's Ann.Civ.St art. 842a-'2,9'2(b).,,,',
, , Prior Laws:
Acts 1987, 70th Leg., ch. 889.
Acts 1989, 71st Leg.. ch. 628, 9 1.
, t
; .-.;
,': l.' .".,,:
'.",1.'
~ 2256.013. Bids for Common Trust Fund Investments
,- "
I, (a) An institution of higher education or a rnunicipality, county,' school
, district, or navigation district rnay invest in a cornrnon trust fund under Section.
2256.012 only after soliciting orally or in another rnannercornpetitive bids
from at least three banks. ' ".". , ,.,.'" . ,'"
, (b) The solicitations for bids required by Subsection (a) for a county shall be
made only to banks located in the county 'unless there are fewer than three
'banks available for the investment located in the county; in which case; the
solicitations shall be rnade to each bank in the county and, as necessary'to
complete thc solicitations, to banks located in this state.
(c) The solicitations for bids rcquircd by Subscction (a) for a rnuhiClpality or
a school district shall be rnadc, only to banks locatcd in the rnunicipality: or
school district unless thercarc fewer than three banks available for, the;
,investmcnts locatcd in thc rnunicipality or school district; in which case, the
solicitations shall be made to each bank in thc rnunicipality' 6rschooldisfiiCt
and, as ncccssary to cornpletc thesolicitations, to banks in a county in which
the rnunicipality or school disti'ict is located. If there are fewer than three
banks availablc for investments in the rnunicipality or school district and in the
counties in which the rnunicipality or school district is located,. the solicitations
shall be madc to each bank in thc municipality or school district and in the
counties in which the rnunicipality or school district is located, and, as
ncccssary to completc the solicitations, to banks located in this state.
(d) This scction applies to a nonprofit corporation' acting on behalf of a
,municipality/county, or s'chool district as it applies to 'the municipality, county;
or school district. ' '.
",:'.;\ :'.. ".'
, ,
Added by Acts 1993, 73rd Leg., ch. 268, 9 1, erE. Sept. 1, 1993.
, It"
1dl'
, ~. I. I ~ t ,!
\, ,l
: :: " "':",:: "'Hi~torlcaI' a~'d StatlItory Notes ',; ',"." 1 ,
, '.' I' l.I:;\,',',:, iI".!':
'Vernon's Ann.Civ.St" art., 842.\-2,
(c), (e). ,,"',
1,< ,'1'1'..
.~ .- \.~: ; ; ~ ..
9 3(a) 'to
Prior Laws: , ,"
'Acts '1987,' 70th Leg.,~h.889:'
,,'."
:: ,j ~.. I
;', .:.!
~ 2256.014. Bank Unwilling to Bid; Presumption
A gcivernrne~tal cntity or nonprofit corporation that is notified by a bank. that
the ,bank is unable or unwilling to bid for invcstments under Section 2256.012
" mayprestime'inaf'the' barikcci~tinues to be tinable or 'unwilling'fo bid, for
'. ; I.' '. ,'" ,~, ..: ,;. l ., ".\I ,(,. ", ',1, ',I.'.' ".. ," '..... ,"'.. '",:_ ',!.: ':.1 \!, ',q-,,,' ''':' ...l, ,\,1 ....ll"J~._;H
'investrnents until the bank in writing notifies the1entit~ oth~rw!~e',\i; I L.:n!.1~1>"1 .
'Added by Acts. 199'J, 73rdtl:eg.) eh, 268;9: 1. ,erE:, Sept, 1,,1993;' ;;011: :'1';," -:d j-,,,fjl>f:.
317:
I
'::-' .,'
'. ~'.
. '.'
.. ""
~2256'.014.
. ...'.
,. .,.
'. ,. .:..
:;OVERNMENT::_CODE
;,Tltle,10 :." .'.
":.' .
.'....
Historical and Statutory, Notes,
Prior Laws: ' ,,' ,..,
, Acts 1987, 70th Leg.; ch,889.,' '
Vernon's Ami.Civ.SI. art. 842a-'2, S 3(1). '
~ '.' ',,' j ; ~. ~: ,'1'.1; .'. (~:. : '.
" '. ';..;',})I:\'
',).ll:;;'i'.'
.; '. \ I:' i' -: : ~:l ,t"
.'; ....,
. \"~\~,.I ,~t,:"-.\"
g 2256.015. Subchapter Cumulative ",' ' ",,'
,.The'authority granted ,by this subchapter :is in addition :to, thatgranted"by
other law.,:,;; "! .'1' ...: '.:l:-::tJ.; "I....~: ;,'.') :." ,L.";'d',!::~
AddedbfActs 19'93, 73rd I..eg:,'ch. 268, S i,'eri. Sept:"!. i9~3. ," ";'i"";':';'::\\
.. " , , .,j. ;:
Historical and Statutory. Notes
'~ ,',:' ,
~ " ;,
Prior Laws: '
,Acts 1987, 70th Leg.,ch. 889. ,,'
, ,vernon's Ann.Civ.SI. art. 842a-2, S 7.
,;','
. I:,
),
; "; '.:! .,";(',
;,;, ;",
, ,
. ~, :' ' '
,
g 2256.016., Subchapter Not Applicable to .Retirement Systems, ,; I
. ,. '. '.. '.1",., ,. . , ,-
'.This'subchapter does not apply toa public retireinentsys'tem as 'defined ,by . ','
SeCtion' 802~Ob1." ,'" : '...i,.
"'(., .' " ; "", ;,,:' . . " ):.' "',: '. ".,," Ill..:" i:\J
Addedby,Acts,1993, 73rd Leg., ch. 268, S l,eff',Sept.l,' 1993., "."" ";.".
Historical and Statutory Notes '
,",,'. . . I, ; I .) " ",
Prior Laws: '
'Acts"l9S7; 70th Leg:, ii:h. 889."
Vernon's Ann.Civ.SI. 'art. 842a-2, 9 6., "
',',
'''1
,,,/.
, "
III
',J",' '..-.;I!
;,1'
" '
;,', .!,' '" ";1\1,."-';
:' , " 1 ~
I .: ~ :. .' \,
, [Sections 2256.0 17 to 2256.050 "'re'ser\r~d forexparislbn]'
.'. 'I I .';
,~ '.' 1 . ;., '\
....'...
.' .-'1 "
'.
",\:)
'.!.;,'
. ;"SUBCHAPTER B. ,INVESTMENT OF, LOCAL FUNDS" "
g 2256.051. Definitions . '" ,i. "
In this subchapter:
(1) "Investment pool" rneans an entity created under Chapter 791 to invest
public funds of two or rnore lo'cal governments." , . , "
(2) "Local funds;' means ptiblic funds in the custody of a state. ageIlci;b~'
political subdivision that: '
(A) are not required by law to be deposited in the state treasury; and
(B) the agency or subdivision has authority,to invest.... .,',' "
(3) "Political subdivision" rneans a county, rnunicipality, or special pur-
pose district. .'. ' " . ' .
'(4) , "State agency" means an office, department,commission'; board,othe~
"agency,' iristitution' of higher educati'on, 'or river attthoritY ,that is p'ari:''6f anY
branch of state' gove'rnrn:blL"" ',,,.', ',''', ..',:11, ,',"f":',! ,..,'Ii'nu ,;\,/,.,'111"';"",,
,,''ACldedby 'Acts .1993,,73rdLeg.; ch;,'268>S .1;~ff:(Sepbl,.,1993.<" ,i;,)~;ol' ,,!;;f' :!d L;~/,hr;:
3.18.
..,. .
, '~ ;.
I'''~< '\
, '
......._..._."c,....._,,,...-.,"._;,..~_......,~.., ,:..,y.,.~:". :--':'-, ..",...... ',", ': ....,_..
.. . .
.' ','." ....,.. .,.::.... ......,.,.._.:.,'~".-....~"'~--,.."-...~-.-..._~.....
. ..':'.
'. ''''.
. ,'.'1,
......
..... "
,'GENERAL GOVERN' ~NT
(Ch. 2256
~2256.054'
Historical and Statutory Notes
: PrIor Laws:
, Acts 1979, 66th Leg., p. 2071, ch. 810.
'Vernon's Ann.Civ.St. art. 4413(34c), 9 1.
I.:,';'
.... :'.
. ,'. . .:. ~ i '
~.225,6.052. Rules Governing Investment "
':~Each state agency or political subdivision shall adopt rules governing the
'investment of its local funds, including rules specifying the scope of authority of
'officers and ernployees designated to invest local funds., " ," """
'.' ,.;,!.',
'Added by Acts 1993, 73rd Leg., ch. 268, 9 I, eff. Sept. I, 1993.
Historical and Statutory Notes' "".
;'Prlor, Laws: , ,', ',' Acts.1989, 7lstLeg., ch.693,,9 2.:..,.., ,:\
'.'Acts 1979, 66th Leg., p. 2071,ch. BIO. Vernon's'Ann.Civ.St. art. '4413(34c), g' 2(a).
, f" . , ' ,:' -'. I '.r'.', ,';. :.' ",,;. ,!
~ j ,> , .... .... .
'1'.\, ',' ~ : ' ,
:', \1': .C,i.'." '.t:~
:~' 2256.053. Investment Rate of Return
A state agency, politicalsubdivisi6n, or investIrient pool shall investi~ 'lo~kl'
funds in investrnents that:
(1) yield the highest possible rate, of return;
.J.,
(2) protect the principal; and . - , ,,,"
(3) are consistent with the operating requirements of the agency, subdivi-"
sion, or pool as determined by the governing body, "'''" ":"", , ' .:
Added by,'Aets 1993, 73rdLeg., chi 268, 9 I, erf. Sept. 1,1993. ,,'
. ..j;;",\ ,t'.
/' ,I :"'_ ..,;',
Historical and 'Statutory Notes
... ! II I I ~
,Acts .1989, 71st, Leg."ch:693i9 2. ,,' ; , ,.' i
, Vernon's Ann:Civ.St. art. 4413(34c);' g' 6(8),'
:,Prlor Laws: ' " ' '
Acts 1979, 66th Leg., 'p. 2071,' ch. BiD:
~ 2256.054. Designation of Investment Officer
, ,
(a) Each state agency or political subdivision shall designate, by rule, order,
ordinance, or resolution, one or mote officers, or ernployees of, the, agency,
subdivision, orinvestrnent pool to be responsible for the investment of its iocal
, , '
funds.
. .' ~":". '. .
. " '
(b) Subsection (a) does not apply if an officer of the agency or subdivision is
'assigned by law the function of investing its local funds.
,
, , (c) An officer or employee of a comrnission created under Chapter 391,; Local
,GoiierntiicI1t Code, is ineligiblb to oe designated as 'rill 'i'nvestrrierit 'offtcgr \h1der
. ".' _ ' " . ' . : ~ ,\.I .) II. \ 1I,-I,J.
, ,Subsection (a). '
'. .;'I!liir.\i' .;....;..1 .',. :,~;~ .1'., ,:.;.,1... .:.::..,:,~,'::,i'\-i(;:.>.":; :
'Added by Acts 1993, 73rd Leg., eh. 268, 9 I, eff. Sept. I, 1993.
319,
.~'i 1: I"~, :'j :'{)H~ \': :',
........,...,..,.,.,.'...., ','"
..-;.,..,...-.....-,...'.. .c.....,..,...... .~..,.
...'
'-.'" ..,~,-...,.,.~".~~":--.--.-._--:-O--.." ~'.
,
.-\.'- ""'. ....
.. '."'~"'"'.'"
...j
. ......
, '
,.... .
'. ..'.
, '
. ,',:,,'
.' " , "
, "
".""."
~2256.054
-;OVERNMENT: .conE,;..
"Title ,,-10'
Hlstoricaland 'Statutory, Notes' " ' ", ,
Vernon's Ann.Civ.St.art. 4413(34c),dig 2(b),;'
3(a)' " '. :"",;, " "
., : .>.' ", , "" I .~'..~,..
"" ".' 1'<'-' .'. "r,',:, ;.,.,';'-
Prior Laws:
i ... ,
Acts 1979, 66tH Leg., p. 2071, ch. 810.
Acts 1989, 71st Leg., ch. 693, 992, '3.
Person responsible 1 '
Notcs of Dcclslons
. '. .. ,..' '-'
surer to invest those funds in ac~6rdaflce~ith:,
Public, Funds Investment Act.' Op.Atty.Gen.
1992, No. nlVl-96." ' :."..
, ":1'
:-"j'
i. ' Perso'; responsible'
Commissioners court may designate which
county funds are to be invested and direct trea-
:' ,'","
\;",',:-,-"
',: ~:',::;,' ll. '
':: ,,:
.',.: "
:.;.., ,'.
. :.' ," " ~ . . :', I .:' ! ,':'f ~ : '
.~.r :~\;
:'
."';
, ',,'
~ 2256.055. Express Authority Required
A person may not deposit, withdraw, invest, transfer, or rnanage in any: other
maruler local funds bfa'state agency or political subdivision without,dpress
written authority of the governing body or chief executive officer of the. agency 'i.
or subdivision. ' , , . ,'.,' ,:', '",>" :'"
, Added by Acts 1993, 73rd Leg., ch. 268, 9 I, err. Sept. 1, 1993. ,
) . ;., I ..' I .;.' . '" .- ~ .', ... : . . " '. .. " ,
" '
;t' ,
Historical and Statutory Notcs "
'" I' j';' (:.': :';:1
, ..
Prior' Laws:
Acts 1979, 66th Leg., p. 2071, ch. 810.
Vernon's' Ann.Civ.St. art. 4413(34c), 9 3(b).
..' . I! . ., . , I ; J" ! ..,' : ~, ~.'
'....;:1 i:.'
"
S 2256.056. Legal Title I'n Investment Pool
, . . " ~ ',' '. . ~.! \' ~ . .
, '
A political subdivision'by:contract.rnay delegate to an.i~vestmentpool the!
authority to hold legal title as custodian of investrnents purchased with its local I:
funds. ,,',' ,,'
Added by Acts 1993;73rd~eg., ch.268; 9 I,err. Sept. I, 1993.,.'"
, '
Historical and Statutory Notes
Prior Laws: ," Acts 1989, 71st Leg.; ch.,693,,9,2; '\
Acts 1979, 66th Leg" p. 2071, ch. 81'0. Vernon', Ann.Civ.St. art 4413(34c)~ g' 6(b).
I" :; ,;:.
."'. '
S 2256.057. Internal'Management Reports
, .:,.
"
i,...
(a) At least ahmially, the investrnent officer of a state agency or political;
subdivisionshaUprepare a written report of the agency'sor'subdivision's local
funds 'investment transactions'for the preceding'year. ' " '. ':..."' i'I'
'. ' (. ,
,;.; .: '. ;';. !,' I:' . " . .," ! 'r: .'- ,.', I.!' 1'\ ,:~, )~;.:
(b) The report rnust: , ," , ,,' ,', .,
1" '. I. I ',' ", . '. ,.'. ..," . .' .' ..'1 . ,'.' ..... ...., ,.{.. ,.::" ./.
, (1) describe in detail the investmentpositiori' ,'of theagency'orsubdivisi6n ,
, orlthe date bf the report; . ,,'.' , "', ',', ,'" ""I ,",' .\: "'.',
" . ' -. .\i;,' ',ft':);L,<,;~,',.\iI'I~:
" (2)' be prepared' jointly by all investrnent officers of the agency, :or, subdivi- ",
sian;.. and 'I."'~:"V\, ,I '~.I'r'.;:/ ',I:,,') ,t t'_, :':..lh ...~:.:.,;' \YJ,;:,~ ,;.>',\~J",'Jij/'.:'O!fd.fh{'ljbA'\'.
320
........,......
, .,.....,. ." .. ", ,......,.....'~._-......,,~.. .",
',.. ",'.'," "'j"".-' ":'. -"'~'"'''':'-'-~~''~',-.'''''~'.';-'~'",,'''.'''
,".
'.' .
. .
',",
......
.,' '.
;.~
. .:.'1
,"
, ,
I
','.'
. ,..
., ,"
~ ~256.10l
GENERAL GOVER.l\ ~NT
Ch.2256 '
(3) be signed' by each investrnent officer of the agency :or, subdivision:
" )', (c) The report shall ,be delivered to the governing body and .the chief execu-
, ,tive' officer of the agency ,or 'subdivision., " ,'. , ' ," ,:J:!,
Added by Acts 1 ~93, 73rd Leg., ch. 268, S I, eff. Sept. 1,1993::
!' ':.,\,'
"':
;i j,"',', I-Iistorlcal and Statutory' Notes
" Prlor"Laws:,; " ',' " ,
""ActsJ979. 66th Leg., p. 2071, ch. 810.
.!. ,
Vernon s Ann.Civ.SI. art. 4413(34c). ~ 4.
. ' . ; i ., :. ~: ,
" '
",:' r'."'"
."-,
., "idF,.
.,.;'
,
....
~ 2256.058. Private Auditor
,Notwithstanding any other law, a state agency shall ernploy a private auditor
if' authorized by the legislative audit cornmhtee on the committee's' inithiiive' Or
:on request of the governing body of the agency. ".,;' ".L,,"
1, ' " , . " . - - .-' " . .-' ~,': ;'.1 ';,.; i,~ >: r..
" Added by Acts 1993, 73rd Leg., ch. 268, S I, efE. Sept. (' 1993.
':',. ,,'"
Histo~ical and Statutory Notes
'. :-~J;.:...,; ';i!"j'~"-f
'. .....
Prior Laws:
, ' Acts 1979, 66th Leg., p. 2071, ch. 810.
Vernon's Ann.Civ.St. art. 4413(34c), ~ 5.
,. .' ;'. 'I" ~'~ ! I': ,; t'; ';:,' /
.\ '.: (. ,':: I ::.~;'.
~ 2256.059. Effect of Other Law
This subchapter does not:
\ . . '
, , . (1) prohibit an investrnent specifically authorized by other law; . or , " " ,.::
,(2) authorize an .investment specifically prohibited by other J~w.;:, ;'; i:.!,,, 0 ,
Ailded by Acts 1993; 73rdLeg.,ch:268,s l,eEE. Sept. I, 1993: ,.,';, ;,,)'
'.'.', ;\',\",.."'"
'j,.",.. .'
, " .. Historical and Statutory Notes:
" '
',j(..,,('
".;,;'1; :\ ,'.,
Prior Laws:
Acts 1979, 66th Leg., p. 2071, ch. 810.
V~rnon's Ann.Civ.St. art. 4413(34c), ~ 7.
i,
',.1;;' ',:.':.:
,', ",
. I- '.', l . . .' ,j .~'"\
[Sections 2256.060 to 2256.100 reserved for expansion]
.,_.,\,:l'i
SUBCHAPTER C. PAYMENT FOR AND DELIVERY AND
DEPOSIT OF SECURITIES PURCHASED BY STATE
~ 2256.101. Authorized Investments; Application of Income
. " ..;, . .' ' .,' . j, .'.i .
,,(a) Aboard o~agency of the state that rnaydirect the investment of funds'of,
the board or agency rnay invest those funds in: '", ,,-" ',:
;', '. (1) direct obligations of the UnhedStates; , ' , ' :',",,',
, , ; ~ !;, .,': .1 '.' . \. " ._ , .., . . ,- . , , ':.; ;.' . , . , .I, '.' .' .' ,_\ ., .' (" ',' I ' : - . c : ,: ';.: 1 J p, .'.
(2) obligations the principal and interest of which are guaranteed by the
,United,States; , , ,I" ; "0" ' ' : ',') ,;'i':I,!,! 1;',I1J.;I',
321
'.' .
.' '
, ,
'. '1
.,'.'
....
!-:.,
.(,',
I
. "','::>.':.,:.'",:'
~ 2256.101
, ( 'VERNMENT. CODE. ,'. '
Tide 10' ' . .
.d (3) direct obligations of or participation certificates guaranteed. by: ' ':
" ..(A) a farm credit bank;,: ''', .,,",1: ;',1
(B) the Federal National Mortgage Association; .' ...' ,," . I" ..."
(C) a federal horne loan bank; or .' . ",.1 ',::',1'
(D) a bank for cooperatives;
(4) certificates of deposit of a bank ortfustcompany, the deposits of which
are fully secured by a pledge of securities described by Subdivisions' or
through (3); , , " . ", " .
. ' I . . , . ; : i ! . i Ii. ( ~ ';.; .
(S) other securities rnade eligible for investrnent by other law or the
constitution; or
.. . , -, "'\ ".,.'.' ",'
(6) a ,cornbination of securities described bySubdivisioi1s (1) thrcitigli'{S):'
: : (6) 'The 'board or'agency 'shall' Clirect the applicatlonof incon{e : ftolfrti 'invi~t~.
mentsi'un1der'tHis":secti8n. '!(l' ~;i,' ,."',;'" \jl',:.: i .' ";i '." ;t'.'~:'I"I,'\1 ,l:~.! ';':.1.::<..','1 n>:D!.J,,'" h
'f,', ,,:~ " .: ,!'l~ "\I':~ 1:. '].';) t.i,l) <,'; n(1
Added by Acts 1993, 73rd Leg., ch. 268,9 1, eff. Sept. I, 1993,.
.' ' '\' '. ; I 1 ...' I .;.; ,:.,' , . '.~ :; ;.' \ ". ' ; ':\, /, ';:! f)..~ '.:i \ t.,
Historical and Statutory Notes
.' .,', ',' " . ,.'~'.'" :' .1 . " ",,'_!,'
'..1
Prior Laws:
.; '.' \,~, ,.1 '!i " ; .~ " J
.' ....
Acts 1967, 60th Leg., p. 915, ch. 401.
. Vernon's Ann.Civ.St. art. 6252-5a, S 1.
,ii
:,,'1:' ,'.:;"'t ,_"-'.;(\
" d~'!' ;.' "1'\ ',-,.:l
~ 2256.102. Payment for Securities Purchased by State:
':.;\'''. :":;'. ;',1
The cornptroller, the state treasurer, or the disbursing officer ofanag'ericy
that has the power to invest ass'ets directly rnay pay for authorized'securities
. purchased from or through:,u 'member in good standing ofthe'iNational
Association of Securities Dealers or frorn or through a national orstate bank.on..
receiving an invoice frorn the seller of the securities showing that the securities
have been purchased by the board or\agency and,thatthe arnount to be paid for !'
the. securities is just, due, and unpaid. ",>,;1 ':.';'i'(' i,
,I' 'i. 1\-'\"'/ .,":'1:1. .-:.\"__'i\
..
'."
Added by Acts 1993, 73rd Leg" ch. 268, 9 I, efL Sept. 1, 1993. ".
'. ).':" ;', ' \'H,II '.l~: \/
....
Prior Laws:
Acts 1967, 60th Leg., p. 915, ch. 401.
Historical and Statutory Notes .... , ,
Acts 1979, 66th Leg., p. 310,ch. 143, S 1.
Vernon's Ann.Civ.St. art. 6252-5a, S 2.
\. ','.
i' /,'
~ 2256.103. Delivery of Securities Purchased by State
..".,"'"
A security purchased under Section 22S6.102 rnay be delivered to the state
treasurer, a bank, 'or the board or agency investing its fUrids.':The deli-very shall
be made, under normal and recognized practices ,in 'theseci.tdti~s' and' ,bankirig:
. . " ,., .;', ' ..' 'I' , !; .,. " 'j' , . '."'" . ': "', r \ I tr',,, I " I I ~ _I .' " I
industries, including the book entry' 'procedure of the' FeaeralReserve 'Bank '
',HU "/,-".1' n;:.'>r!'.'.~"!:f'.;/';,~:', .,".j:: 1''")1\'\'.'1'' l.ff' <.,;'::!.,<~:~l:,d',; i.; ll::""!'~'-';": '~t1j' :.-fj":',l:j{:::;dd{) \:~.} '.d.'>
Added by Acts 1993, 73rd Leg., ch. 268, 9 1, eff.Sept. 1, 1993.,';tI:.:;~ I,jltiill
322
"'.
~.. '-'-T'_~_'-'-":' .":.,,..~..- ..,'.... '~,., '._;"',' P,'...., , ."
....,...;-.".....,.
.'.- ". ~"":.'":<':";"""'"
......-,.,."...-
,',
, ' . ., .
, ',"
: " ~':.:':
,,'
i
,'GENEJlAL:' GOVERNMENT
Ch. 2257 '
',', .'
'HIstorIcal arid Statutory Notes ,..,",:
Acts 1979, 66th Leg.,'p.310/ ch. 143', '9 'I.'
Vernon's Arin.Civ.St. art.'6252-5a, 9 2>'" ..
Prior Laws: '
.' Acts 1967, 60th Leg., p. 915, ch. 401.
, '
'::..'
, ~ 2256.104. Deposit of SecuritIes Purchased by State
, ' ,
At thc dircction of the state treasurer or the agcncy, a security ,purchased
under Section 2256.102 may be depositcd in trust with'abank'or'Jederal
, reserve bank or branch designated by the'treasurer, whetheriri or 'outside' the,'
'state. ' The deposit shall be evidenced by a trust receipt of the bank with which
, '"the securities are deposited. "",
l. ,..', \... ,: ,,':: ',/'
Added by Acts 1993,:,73rd Leg., eh. 268,: S I, err. Sept.. 1; 1993.'
,"".oll;;;,l":
, '
., :. ,I'. I . ~ ", ~ . '
";t
" Historical imd Stattttory Notes . , , '," ...,,'.
Acts 1979, 66th Leg., p. 310, eh. 143, 92.
Vernon's Ann.Civ.S't. art. 6252-5a, 9 3.
.... . ~
". .
, PrIor' Laws:
Acts 1967, 60th Leg., p. 915, ch. 401.
'..,'
',,-.. '.' '.
-. . .,.....-----,.-.-..--.-.._........_--~.-----=--~~.-
",1"
'.'
"
--,-.---,----~--,-,...---_....
. ..,'
"
, . . . '
" '.' '. .
,,", ' 't';""
. '.,.' .... . ,
'".-., ....:: -,',
.... .....
..:......,....
'. :...,........::