Tex.
Est. Code Section 1161.003
Investments that Meet Standard for Investment
(1)
bonds or other obligations of the United States;(2)
tax-supported bonds of this state;(3)
except as limited by Sections 1161.004 (Restrictions on Investment in Certain Bonds)(b) and (c), tax-supported bonds of a county, district, political subdivision, or municipality in this state;(4)
if the payment of the shares or share accounts is insured by the Federal Deposit Insurance Corporation, shares or share accounts of:(A)
a state savings and loan association or savings bank that has its main office or a branch office in this state; or(B)
a federal savings and loan association or savings bank that has its main office or a branch office in this state;(5)
collateral bonds that:(A)
are issued by a company incorporated under the laws of this state that has a paid-in capital of $1 million or more;(B)
are a direct obligation of the company; and(C)
are specifically secured by first mortgage real estate notes or other securities pledged with a trustee;(6)
interest-bearing time deposits that may be withdrawn on or before one year after demand in a bank that does business in this state, if the payment of the time deposits is insured by the Federal Deposit Insurance Corporation; or(7)
an ABLE account established in accordance with the Texas Achieving a Better Life Experience (ABLE) Program under Subchapter J, Chapter 54 (Tuition and Fees), Education Code.
Source:
Section 1161.003 — Investments that Meet Standard for Investment, https://statutes.capitol.texas.gov/Docs/ES/htm/ES.1161.htm#1161.003 (accessed May 26, 2025).
