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 2256.002. Definitions

Sec. 2256.002.  DEFINITIONS.  In this chapter:
(1)  "Bond proceeds" means the proceeds from the sale of bonds, notes, and other obligations issued by an entity, and reserves and funds maintained by an entity for debt service purposes.
(2)  "Book value" means the original acquisition cost of an investment plus or minus the accrued amortization or accretion.
(3)  "Funds" means public funds in the custody of a state agency or local government that:
(A)  are not required by law to be deposited in the state treasury;  and
(B)  the investing entity has authority to invest.
(4)  "Institution of higher education" has the meaning assigned by Section 61.003, Education Code.
(5)  "Investing entity" and "entity" mean an entity subject to this chapter and described by Section 2256.003.
(6)  "Investment pool" means an entity created under this code to invest public funds jointly on behalf of the entities that participate in the pool and whose investment objectives in order of priority are:
(A)  preservation and safety of principal;
(B)  liquidity;  and
(C)  yield.
(7)  "Local government" means a municipality, a county, a school district, a district or authority created under Section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution, a fresh water supply district, a hospital district, and any political subdivision, authority, public corporation, body politic, or instrumentality of the State of Texas, and any nonprofit corporation acting on behalf of any of those entities.
(8)  "Market value" means the current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source quoted on the valuation date.
(9)  "Pooled fund group" means an internally created fund of an investing entity in which one or more institutional accounts of the investing entity are invested.
(10)  "Qualified representative" means a person who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following:
(A)  for a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers;
(B)  for a state or federal bank, a savings bank, or a state or federal credit union, a member of the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution;
(C)  for an investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment pool to sign the written instrument on behalf of the investment pool;  or
(D)  for an investment management firm registered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or, if not subject to registration under that Act, registered with the State Securities Board, a person who is an officer or principal of the investment management firm.
(11)  "School district" means a public school district.
(12)  "Separately invested asset" means an account or fund of a state agency or local government that is not invested in a pooled fund group.
(13)  "State agency" means an office, department, commission, board, or other agency that is part of any branch of state government, an institution of higher education, and any nonprofit corporation acting on behalf of any of those entities.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 1421, Sec. 1, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 1454, Sec. 1, eff. Sept. 1, 1999.