reglab/statecodes huggingface dataset:
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.0115. Authorized Investments: Securities Lending Program

Sec. 2256.0115.  AUTHORIZED INVESTMENTS:  SECURITIES LENDING PROGRAM.  (a)  A securities lending program is an authorized investment under this subchapter if it meets the conditions provided by this section.
(b)  To qualify as an authorized investment under this subchapter:
(1)  the value of securities loaned under the program must be not less than 100 percent collateralized, including accrued income;
(2)  a loan made under the program must allow for termination at any time;
(3)  a loan made under the program must be secured by:
(A)  pledged securities described by Section 2256.009;
(B)  pledged irrevocable letters of credit issued by a bank that is:
(i)  organized and existing under the laws of the United States or any other state;  and
(ii)  continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent;  or
(C)  cash invested in accordance with Section:
(i)  2256.009;
(ii)  2256.013;
(iii)  2256.014;  or
(iv)  2256.016;
(4)  the terms of a loan made under the program must require that the securities being held as collateral be:
(A)  pledged to the investing entity;
(B)  held in the investing entity's name;  and
(C)  deposited at the time the investment is made with the entity or with a third party selected by or approved by the investing entity;
(5)  a loan made under the program must be placed through:
(A)  a primary government securities dealer, as defined by 5 C.F.R. Section 6801.102(f), as that regulation existed on September 1, 2003;  or
(B)  a financial institution doing business in this state;  and
(6)  an agreement to lend securities that is executed under this section must have a term of one year or less.
Added by Acts 2003, 78th Leg., ch. 1227, Sec. 1, eff. Sept. 1, 2003.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.012. Authorized Investments: Banker's Acceptances

Sec. 2256.012.  AUTHORIZED INVESTMENTS:  BANKER'S ACCEPTANCES.  A bankers' acceptance is an authorized investment under this subchapter if the bankers' acceptance:
(1)  has a stated maturity of 270 days or fewer from the date of its issuance;
(2)  will be, in accordance with its terms, liquidated in full at maturity;
(3)  is eligible for collateral for borrowing from a Federal Reserve Bank;  and
(4)  is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.013. Authorized Investments: Commercial Paper

Sec. 2256.013.  AUTHORIZED INVESTMENTS: COMMERCIAL PAPER.  Commercial paper is an authorized investment under this subchapter if the commercial paper:
(1)  has a stated maturity of 365 days or fewer from the date of its issuance; and
(2)  is rated not less than A-1 or P-1 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 secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 1133 (H.B. 2706), Sec. 2, eff. September 1, 2019.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.014. Authorized Investments: Mutual Funds

Sec. 2256.014.  AUTHORIZED INVESTMENTS:  MUTUAL FUNDS.
(a)  A no-load money market mutual fund is an authorized investment under this subchapter if the mutual fund:
(1)  is registered with and regulated by the Securities and Exchange Commission;
(2)  provides the investing entity with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.); and
(3)  complies with federal Securities and Exchange Commission Rule 2a-7 (17 C.F.R. Section 270.2a-7), promulgated under the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et seq.).
(b)  In addition to a no-load money market mutual fund permitted as an authorized investment in Subsection (a), a no-load mutual fund is an authorized investment under this subchapter if the mutual fund:
(1)  is registered with the Securities and Exchange Commission;
(2)  has an average weighted maturity of less than two years; and
(3)  either:
(A)  has a duration of one year or more and is invested exclusively in obligations approved by this subchapter; or
(B)  has a duration of less than one year and the investment portfolio is limited to investment grade securities, excluding asset-backed securities.
(c)  An entity is not authorized by this section to:
(1)  invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in mutual funds described in Subsection (b);
(2)  invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection (b);  or
(3)  invest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in any one mutual fund described in Subsection (a) or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 1421, Sec. 7, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 1454, Sec. 8, eff. Sept. 1, 1999.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 773 (H.B. 1003), Sec. 4, eff. June 14, 2017.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.015. Authorized Investments: Guaranteed Investment Contracts

Sec. 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 with the guaranteed investment contract.
(d)  Section 1371.059(c) applies to the execution of a guaranteed investment contract by an investing entity.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 1421, Sec. 8, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 1454, Sec. 9, 10, eff. Sept. 1, 1999.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 773 (H.B. 1003), Sec. 5, eff. June 14, 2017.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.017. Existing Investments

Sec. 2256.017.  EXISTING INVESTMENTS.  Except as provided by Chapter 2270, an entity is not required to liquidate investments that were authorized investments at the time of purchase.
Added by Acts 1995, 74th Leg., ch. 76, Sec. 5.46(a), eff. Sept. 1, 1995;  Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 1421, Sec. 10, eff. Sept. 1, 1997.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 96 (S.B. 253), Sec. 2, eff. May 23, 2017.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.019. Rating of Certain Investment Pools

Sec. 2256.019.  RATING OF CERTAIN INVESTMENT POOLS.  A public funds investment pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service.
Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 1421, Sec. 11, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1004 (H.B. 2226), Sec. 8, eff. June 17, 2011.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.020. Authorized Investments: Institutions of Higher Education

Sec. 2256.020.  AUTHORIZED INVESTMENTS:  INSTITUTIONS OF HIGHER EDUCATION.  In addition to the authorized investments permitted by this subchapter, an institution of higher education may purchase, sell, and invest its funds and funds under its control in the following:
(1)  cash management and fixed income funds sponsored by organizations exempt from federal income taxation under Section 501(f), Internal Revenue Code of 1986 (26 U.S.C. Section 501(f));
(2)  negotiable certificates of deposit issued by a bank that has a certificate of deposit rating of at least 1 or the equivalent by a nationally recognized credit rating agency or that is associated with a holding company having a commercial paper rating of at least A-1, P-1, 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 those categories.
Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.0201. Authorized Investments; Municipal Utility

Sec. 2256.0201.  AUTHORIZED INVESTMENTS;  MUNICIPAL UTILITY.  (a)  A municipality that owns a municipal electric utility that is engaged in the distribution and sale of electric energy or natural gas to the public may enter into a hedging contract and related security and insurance agreements in relation to fuel oil, natural gas, coal, nuclear fuel, and electric energy to protect against loss due to price fluctuations.  A hedging transaction must comply with the regulations of the Commodity Futures Trading Commission and the Securities and Exchange Commission.  If there is a conflict between the municipal charter of the municipality and this chapter, this chapter prevails.
(b)  A payment by a municipally owned electric or gas utility under a hedging contract or related agreement in relation to fuel supplies or fuel reserves is a fuel expense, and the utility may credit any amounts it receives under the contract or agreement against fuel expenses.
(c)  The governing body of a municipally owned electric or gas utility or the body vested with power to manage and operate the municipally owned electric or gas utility may set policy regarding hedging transactions.
(d)  In this section, "hedging" means the buying and selling of fuel oil, natural gas, coal, nuclear fuel, and electric energy futures or options or similar contracts on those commodities and related transportation costs as a protection against loss due to price fluctuation.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 48, eff. Sept. 1, 1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 7 (S.B. 495), Sec. 1, eff. April 13, 2007.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.0202. Authorized Investments: Municipal Funds From Management and Development of Mineral Rights

Sec. 2256.0202.  AUTHORIZED INVESTMENTS:  MUNICIPAL FUNDS FROM MANAGEMENT AND DEVELOPMENT OF MINERAL RIGHTS.  (a)  In addition to other investments authorized under this subchapter, a municipality may invest funds received by the municipality from a lease or contract for the management and development of land owned by the municipality and leased for oil, gas, or other mineral development in any investment authorized to be made by a trustee under Subtitle B, Title 9, Property Code (Texas Trust Code).
(b)  Funds invested by a municipality under this section shall be segregated and accounted for separately from other funds of the municipality.
Added by Acts 2009, 81st Leg., R.S., Ch. 1371 (S.B. 894), Sec. 1, eff. September 1, 2009.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.0203. Authorized Investments: Ports and Navigation Districts

Sec. 2256.0203.  AUTHORIZED INVESTMENTS: PORTS AND NAVIGATION DISTRICTS. (a) In this section, "district" means a navigation district organized under Section 52, Article III, or Section 59, Article XVI, Texas Constitution.
(b)  In addition to the authorized investments permitted by this subchapter, a port or district may purchase, sell, and invest its funds and funds under its control in negotiable certificates of deposit issued by a bank that has a certificate of deposit rating of at least 1 or the equivalent by a nationally recognized credit rating agency or that is associated with a holding company having a commercial paper rating of at least A-1, P-1, or the equivalent by a nationally recognized credit rating agency.
Added by Acts 2011, 82nd Leg., R.S., Ch. 804 (H.B. 2346), Sec. 1, eff. September 1, 2011.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.0205. Authorized Investments; Decommissioning Trust

Sec. 2256.0205.  AUTHORIZED INVESTMENTS; DECOMMISSIONING TRUST.  (a)  In this section:
(1)  "Decommissioning trust" means a trust created to provide the Nuclear Regulatory Commission assurance that funds will be available for decommissioning purposes as required under 10 C.F.R. Part 50 or other similar regulation.
(2)  "Funds" includes any money held in a decommissioning trust regardless of whether the money is considered to be public funds under this subchapter.
(b)  In addition to other investments authorized under this subchapter, a municipality that owns a municipal electric utility that is engaged in the distribution and sale of electric energy or natural gas to the public may invest funds held in a decommissioning trust in any investment authorized by Subtitle B, Title 9, Property Code.
Added by Acts 2005, 79th Leg., Ch. 121 (S.B. 1464), Sec. 1, eff. September 1, 2005.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.0206. Authorized Investments: Hedging Transactions

Sec. 2256.0206.  AUTHORIZED INVESTMENTS: HEDGING TRANSACTIONS.  (a)  In this section:
(1)  "Eligible entity" means a political subdivision that has:
(A)  a principal amount of at least $250 million in:
(i)  outstanding long-term indebtedness;
(ii)  long-term indebtedness proposed to be issued; or
(iii)  a combination of outstanding long-term indebtedness and long-term indebtedness proposed to be issued; and
(B)  outstanding long-term indebtedness that is rated in one of the four highest rating categories for long-term debt instruments by a nationally recognized rating agency for municipal securities, without regard to the effect of any credit agreement or other form of credit enhancement entered into in connection with the obligation.
(2)  "Eligible project" has the meaning assigned by Section 1371.001.
(3)  "Hedging" means acting to protect against economic loss due to price fluctuation of a commodity or related investment by entering into an offsetting position or using a financial agreement or producer price agreement in a correlated security, index, or other commodity.
(b)  This section prevails to the extent of any conflict between this section and:
(1)  another law; or
(2)  an eligible entity's municipal charter, if applicable.
(c)  The governing body of an eligible entity shall establish the entity's policy regarding hedging transactions.
(d)  An eligible entity may enter into hedging transactions, including hedging contracts, and related security, credit, and insurance agreements in connection with commodities used by an eligible entity in the entity's general operations, with the acquisition or construction of a capital project, or with an eligible project.  A hedging transaction must comply with the regulations of the federal Commodity Futures Trading Commission and the federal Securities and Exchange Commission.
(e)  An eligible entity may pledge as security for and to the payment of a hedging contract or a security, credit, or insurance agreement any general or special revenues or funds the entity is authorized by law to pledge to the payment of any other obligation.
(f)  Section 1371.059(c) applies to the execution by an eligible entity of a hedging contract and any related security, credit, or insurance agreement.
(g)  An eligible entity may credit any amount the entity receives under a hedging contract against expenses associated with a commodity purchase.
(h)  An eligible entity's cost of or payment under a hedging contract or agreement may be considered:
(1)  an operation and maintenance expense of the eligible entity;
(2)  an acquisition expense of the eligible entity;
(3)  a project cost of an eligible project; or
(4)  a construction expense of the eligible entity.
Added by Acts 2017, 85th Leg., R.S., Ch. 773 (H.B. 1003), Sec. 7, eff. June 14, 2017.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.0207. Authorized Investments: Public Junior College District Funds From Management and Development of Mineral Rights

Sec. 2256.0207.  AUTHORIZED INVESTMENTS: PUBLIC JUNIOR COLLEGE DISTRICT FUNDS FROM MANAGEMENT AND DEVELOPMENT OF MINERAL RIGHTS.  (a)  In addition to other investments authorized under this subchapter, the governing board of a public junior college district may invest funds received by the district from a lease or contract for the management and development of land owned by the district and leased for oil, gas, or other mineral development in any investment authorized to be made by a trustee under Subtitle B, Title 9, Property Code (Texas Trust Code).
(b)  Funds invested by the governing board of a public junior college district under this section shall be segregated and accounted for separately from other funds of the district.
Added by Acts 2017, 85th Leg., R.S., Ch. 344 (H.B. 1472), Sec. 1, eff. September 1, 2017.
Redesignated from Government Code, Section 2256.0206 by Acts 2019, 86th Leg., R.S., Ch. 467 (H.B. 4170), Sec. 21.001(34), eff. September 1, 2019.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.0208. Local Government Investment of Bond Proceeds and Pledged Revenue

Sec. 2256.0208.  LOCAL GOVERNMENT INVESTMENT OF BOND PROCEEDS AND PLEDGED REVENUE.  (a)  In this section, "pledged revenue" means money pledged to the payment of or as security for:
(1)  bonds or other indebtedness issued by a local government;
(2)  obligations under a lease, installment sale, or other agreement of a local government; or
(3)  certificates of participation in a debt or obligation described by Subdivision (1) or (2).
(b)  The investment officer of a local government may invest bond proceeds or pledged revenue only to the extent permitted by this chapter, in accordance with:
(1)  statutory provisions governing the debt issuance or the agreement, as applicable; and
(2)  the local government's investment policy regarding the debt issuance or the agreement, as applicable.
Added by Acts 2019, 86th Leg., R.S., Ch. 1133 (H.B. 2706), Sec. 4, eff. September 1, 2019.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.021. Effect of Loss of Required Rating

Sec. 2256.021.  EFFECT OF LOSS OF REQUIRED RATING.  An investment that requires a minimum rating under this subchapter does not qualify as an authorized investment during the period the investment does not have the minimum rating.  An entity shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating.
Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.022. Expansion of Investment Authority

Sec. 2256.022.  EXPANSION OF INVESTMENT AUTHORITY.  Expansion of investment authority granted by this chapter shall require a risk assessment by the state auditor or performed at the direction of the state auditor, subject to the legislative audit committee's approval of including the review in the audit plan under Section 321.013.
Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 2003, 78th Leg., ch. 785, Sec. 42, eff. Sept. 1, 2003.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.023. Internal Management Reports

Sec. 2256.023.  INTERNAL MANAGEMENT REPORTS.  (a)  Not less than quarterly, the investment officer shall prepare and submit to the governing body of the entity a written report of investment transactions for all funds covered by this chapter for the preceding reporting period.
(b)  The report must:
(1)  describe in detail the investment position of the entity on the date of the report;
(2)  be prepared jointly by all investment officers of the entity;
(3)  be signed by each investment officer of the entity;
(4)  contain a summary statement of each pooled fund group that states the:
(A)  beginning market value for the reporting period;
(B)   ending market value for the period; and
(C)  fully accrued interest for the reporting period;
(5)  state the book value and market value of each separately invested asset at the end of the reporting period by the type of asset and fund type invested;
(6)  state the maturity date of each separately invested asset that has a maturity date;
(7)  state the account or fund or pooled group fund in the state agency or local government for which each individual investment was acquired; and
(8)  state the compliance of the investment portfolio of the state agency or local government as it relates to:
(A)  the investment strategy expressed in the agency's or local government's investment policy; and
(B)  relevant provisions of this chapter.
(c)  The report shall be presented not less than quarterly to the governing body and the chief executive officer of the entity within a reasonable time after the end of the period.
(d)  If an entity invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports prepared by the investment officers under this section shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the governing body by that auditor.
Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.  Amended by Acts 1997, 75th Leg., ch. 1421, Sec. 12, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1004 (H.B. 2226), Sec. 9, eff. June 17, 2011.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.024. Subchapter Cumulative

Sec. 2256.024.  SUBCHAPTER CUMULATIVE.  (a)  The authority granted by this subchapter is in addition to that granted by other law.  Except as provided by Subsection (b) and Section 2256.017, this subchapter does not:
(1)  prohibit an investment specifically authorized by other law; or
(2)  authorize an investment specifically prohibited by other law.
(b)  Except with respect to those investing entities described in Subsection (c), a security described in Section 2256.009(b) is not an authorized investment for a state agency, a local government, or another investing entity, notwithstanding any other provision of this chapter or other law to the contrary.
(c)  Mortgage pass-through certificates and individual mortgage loans that may constitute an investment described in Section 2256.009(b) are authorized investments with respect to the housing bond programs operated by:
(1)  the Texas Department of Housing and Community Affairs or a nonprofit corporation created to act on its behalf;
(2)  an entity created under Chapter 392, Local Government Code;  or
(3)  an entity created under Chapter 394, Local Government Code.
Added by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
Amended by:
Acts 2017, 85th Leg., R.S., Ch. 96 (S.B. 253), Sec. 3, eff. May 23, 2017.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.025. Selection of Authorized Brokers

Sec. 2256.025.  SELECTION OF AUTHORIZED BROKERS.  The governing body of an entity subject to this subchapter or the designated investment committee of the entity shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the entity.
Added by Acts 1997, 75th Leg., ch. 1421, Sec. 13, eff. Sept. 1, 1997.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter A. Authorized Investments for Governmental Entities › Section 2256.026. Statutory Compliance

Sec. 2256.026.  STATUTORY COMPLIANCE.  All investments made by entities must comply with this subchapter and all federal, state, and local statutes, rules, or regulations.
Added by Acts 1997, 75th Leg., ch. 1421, Sec. 13, eff. Sept. 1, 1997.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter B. Miscellaneous Provisions › Section 2256.051. Electronic Funds Transfer

Sec. 2256.051.  ELECTRONIC FUNDS TRANSFER.  Any local government may use electronic means to transfer or invest all funds collected or controlled by the local government.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter B. Miscellaneous Provisions › Section 2256.052. Private Auditor

Sec. 2256.052.  PRIVATE AUDITOR.  Notwithstanding any other law, a state agency shall employ a private auditor if authorized by the legislative audit committee either on the committee's initiative or on request of the governing body of the agency.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter B. Miscellaneous Provisions › Section 2256.053. Payment for Securities Purchased by State

Sec. 2256.053.  PAYMENT FOR SECURITIES PURCHASED BY STATE.  The comptroller or the disbursing officer of an agency that has the power to invest assets directly may pay for authorized securities purchased from or through a member in good standing of the National Association of Securities Dealers or from or through a national or state bank on receiving an invoice from the seller of the securities showing that the securities have been purchased by the board or agency and that the amount to be paid for the securities is just, due, and unpaid.  A purchase of securities may not be made at a price that exceeds the existing market value of the securities.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 1423, Sec. 8.67, eff. Sept. 1, 1997.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter B. Miscellaneous Provisions › Section 2256.054. Delivery of Securities Purchased by State

Sec. 2256.054.  DELIVERY OF SECURITIES PURCHASED BY STATE.  A security purchased under this chapter may be delivered to the comptroller, a bank, or the board or agency investing its funds.  The delivery shall be made under normal and recognized practices in the securities and banking industries, including the book entry procedure of the Federal Reserve Bank.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 1423, Sec. 8.68, eff. Sept. 1, 1997.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2256 - Public Funds Investment › Subchapter B. Miscellaneous Provisions › Section 2256.055. Deposit of Securities Purchased by State

Sec. 2256.055.  DEPOSIT OF SECURITIES PURCHASED BY STATE.  At the direction of the comptroller or the agency, a security purchased under this chapter may be deposited in trust with a bank or federal reserve bank or branch designated by the comptroller, whether in or outside the state.  The deposit shall be held in the entity's name as evidenced by a trust receipt of the bank with which the securities are deposited.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 1423, Sec. 8.69, eff. Sept. 1, 1997.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter A. General Provisions › Section 2257.001. Short Title

Sec. 2257.001.  SHORT TITLE.  This chapter may be cited as the Public Funds Collateral Act.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter A. General Provisions › Section 2257.0025. High-Risk Mortgage Security

Sec. 2257.0025.  HIGH-RISK MORTGAGE SECURITY.  (a)  For purposes of this chapter, a fixed-rate collateralized mortgage obligation is a high-risk mortgage security if the security:
(1)  has an average life sensitivity with a weighted average life that:
(A)  extends by more than four years, assuming an immediate and sustained parallel shift in the yield curve of plus 300 basis points;  or
(B)  shortens by more than six years, assuming an immediate and sustained parallel shift in the yield curve of minus 300 basis points;  and
(2)  is price sensitive;  that is, the estimated change in the price of the mortgage derivative product is more than 17 percent, because of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points.
(b)  For purposes of this chapter, a floating-rate collateralized mortgage obligation is a high-risk mortgage security if the security:
(1)  bears an interest rate that is equal to the contractual cap on the instrument;  or
(2)  is price sensitive;  that is, the estimated change in the price of the mortgage derivative product is more than 17 percent, because of an immediate and sustained parallel shift in the yield curve of plus or minus 300 basis points.
Added by Acts 1997, 75th Leg., ch. 254, Sec. 2, eff. Sept. 1, 1997.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter A. General Provisions › Section 2257.003. Chapter Not Applicable to Deferred Compensation Plans

Sec. 2257.003.  CHAPTER NOT APPLICABLE TO DEFERRED COMPENSATION PLANS.  This chapter does not apply to funds that a public entity maintains or administers under a deferred compensation plan, the federal income tax treatment of which is governed by Section 401(k) or 457 of the Internal Revenue Code of 1986 (26 U.S.C. Sections 401(k) and 457).
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter A. General Provisions › Section 2257.004. Conflict With Other Law

Sec. 2257.004.  CONFLICT WITH OTHER LAW.  This chapter prevails over any other law relating to security for a deposit of public funds to the extent of any conflict.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter A. General Provisions › Section 2257.005. Contract Governs Legal Action

Sec. 2257.005.  CONTRACT GOVERNS LEGAL ACTION.  A legal action brought by or against a public entity that arises out of or in connection with the duties of a depository, custodian, or permitted institution under this chapter must be brought and maintained as provided by the contract with the public entity.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter B. Depository; Security for Deposit of Public Funds › Section 2257.021. Collateral Required

Sec. 2257.021.  COLLATERAL REQUIRED.  A deposit of public funds shall be secured by eligible security to the extent and in the manner required by this chapter.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter B. Depository; Security for Deposit of Public Funds › Section 2257.022. Amount of Collateral

Sec. 2257.022.  AMOUNT OF COLLATERAL.  (a)  Except as provided by Subsection (b), the total value of eligible security to secure a deposit of public funds must be in an amount not less than the amount of the deposit of public funds:
(1)  increased by the amount of any accrued interest;  and
(2)  reduced to the extent that the United States or an instrumentality of the United States insures the deposit.
(b)  The total value of eligible security described by Section 45.201(4)(D), Education Code, to secure a deposit of public funds of a school district must be in an amount not less than 110 percent of the amount of the deposit as determined under Subsection (a).  The total market value of the eligible security must be reported at least once each month to the school district.
(c)  The value of a surety bond is its face value.
(d)  The value of an investment security is its market value.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.  Amended by Acts 2003, 78th Leg., ch. 201, Sec. 46, eff. Sept. 1, 2003.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter B. Depository; Security for Deposit of Public Funds › Section 2257.023. Collateral Policy

Sec. 2257.023.  COLLATERAL POLICY.  (a)  In accordance with a written policy approved by the governing body of the public entity, a public entity shall determine if an investment security is eligible to secure deposits of public funds.
(b)  The written policy may include:
(1)  the security of the institution that obtains or holds an investment security;
(2)  the substitution or release of an investment security;  and
(3)  the method by which an investment security used to secure a deposit of public funds is valued.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter B. Depository; Security for Deposit of Public Funds › Section 2257.024. Contract for Securing Deposit of Public Funds

Sec. 2257.024.  CONTRACT FOR SECURING DEPOSIT OF PUBLIC FUNDS.  (a)  A public entity may contract with a bank that has its main office or a branch office in this state to secure a deposit of public funds.
(b)  The contract may contain a term or condition relating to an investment security used as security for a deposit of public funds, including a term or condition relating to the:
(1)  possession of the collateral;
(2)  substitution or release of an investment security;
(3)  ownership of the investment securities of the bank used to secure a deposit of public funds;  and
(4)  method by which an investment security used to secure a deposit of public funds is valued.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.  Amended by Acts 1999, 76th Leg., ch. 344, Sec. 5.006, eff. Sept. 1, 1999.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter B. Depository; Security for Deposit of Public Funds › Section 2257.025. Records of Depository

Sec. 2257.025.  RECORDS OF DEPOSITORY.  (a)  A public entity's depository shall maintain a separate, accurate, and complete record relating to a pledged investment security, a deposit of public funds, and a transaction related to a pledged investment security.
(b)  The comptroller or the public entity may examine and verify at any reasonable time a pledged investment security or a record a depository maintains under this section.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.  Amended by Acts 1997, 75th Leg., ch. 891, Sec. 3.16, eff. Sept. 1, 1997.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter B. Depository; Security for Deposit of Public Funds › Section 2257.026. Change in Amount or Activity of Deposits of Public Funds

Sec. 2257.026.  CHANGE IN AMOUNT OR ACTIVITY OF DEPOSITS OF PUBLIC FUNDS.  A public entity shall inform the depository for the public entity's deposit of public funds of a significant change in the amount or activity of those deposits within a reasonable time before the change occurs.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter C. Custodian; Permitted Institution › Section 2257.041. Deposit of Securities With Custodian

Sec. 2257.041.  DEPOSIT OF SECURITIES WITH CUSTODIAN.  (a)  In addition to other authority granted by law, a depository for a public entity other than a state agency may deposit with a custodian a security pledged to secure a deposit of public funds.
(b)  At the request of the public entity, a depository for a public entity other than a state agency shall deposit with a custodian a security pledged to secure a deposit of public funds.
(c)  A depository for a state agency shall deposit with a custodian a security pledged to secure a deposit of public funds.  The custodian and the state agency shall agree in writing on the terms and conditions for securing a deposit of public funds.
(d)  A custodian must be approved by the public entity and be:
(1)  a state or national bank that:
(A)  is designated by the comptroller as a state depository;
(B)  has its main office or a branch office in this state; and
(C)  has a capital stock and permanent surplus of $5 million or more;
(2)  the Texas Treasury Safekeeping Trust Company;
(3)  a Federal Reserve Bank or a branch of a Federal Reserve Bank;
(4)  a federal home loan bank; or
(5)  a financial institution authorized to exercise fiduciary powers that is designated by the comptroller as a custodian pursuant to Section 404.031(e).
(e)  A custodian holds in trust the securities to secure the deposit of public funds of the public entity in the depository pledging the securities.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.  Amended by Acts 1995, 74th Leg., ch. 1010, Sec. 1, eff. June 17, 1995;  Acts 1997, 75th Leg., ch. 891, Sec. 3.17, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 344, Sec. 5.007, eff. Sept. 1, 1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 486 (S.B. 638), Sec. 3, eff. September 1, 2009.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter C. Custodian; Permitted Institution › Section 2257.042. Deposit of Securities With Permitted Institution

Sec. 2257.042.  DEPOSIT OF SECURITIES WITH PERMITTED INSTITUTION.  (a)  A custodian may deposit with a permitted institution an investment security the custodian holds under Section 2257.041.
(b)  If a deposit is made under Subsection (a):
(1)  the permitted institution shall hold the investment security to secure funds the public entity deposits in the depository that pledges the investment security;
(2)  the trust receipt the custodian issues under Section 2257.045 shall show that the custodian has deposited the security in a permitted institution;  and
(3)  the permitted institution, on receipt of the investment security, shall immediately issue to the custodian an advice of transaction or other document that is evidence that the custodian deposited the security in the permitted institution.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter C. Custodian; Permitted Institution › Section 2257.043. Depository as Custodian or Permitted Institution

Sec. 2257.043.  DEPOSITORY AS CUSTODIAN OR PERMITTED INSTITUTION.  (a)  A public entity other than a state agency may prohibit a depository or an entity of which the depository is a branch from being the custodian of or permitted institution for a security the depository pledges to secure a deposit of public funds.
(b)  A depository or an entity of which the depository is a branch may not be the custodian of or permitted institution for a security the depository pledges to secure a deposit of public funds by a state agency.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter C. Custodian; Permitted Institution › Section 2257.044. Custodian as Bailee

Sec. 2257.044.  CUSTODIAN AS BAILEE.  (a)  A custodian under this chapter or a custodian of a security pledged to an institution of higher education, as defined by Section 61.003, Education Code, whether acting alone or through a permitted institution, is for all purposes the bailee or agent of the public entity or institution depositing the public funds with the depository.
(b)  To the extent of any conflict, Subsection (a) prevails over Chapter 8 or 9, Business & Commerce Code.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.