Tex. Gov't Code Section 2256.009
Authorized Investments: Obligations Of, or Guaranteed by Governmental Entities


(a)

Except as provided by Subsection (b), the following are authorized investments under this subchapter:

(1)

obligations, including letters of credit, of the United States or its agencies and instrumentalities, including the Federal Home Loan Banks;

(2)

direct obligations of this state or its agencies and instrumentalities;

(3)

collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States;

(4)

other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States;

(5)

obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent;

(6)

bonds issued, assumed, or guaranteed by the State of Israel;

(7)

interest-bearing banking deposits that are guaranteed or insured by:

(A)

the Federal Deposit Insurance Corporation or its successor; or

(B)

the National Credit Union Share Insurance Fund or its successor; and

(8)

interest-bearing banking deposits other than those described by Subdivision (7) if:

(A)

the funds invested in the banking deposits are invested through:
(i)
a broker with a main office or branch office in this state that the investing entity selects from a list the governing body or designated investment committee of the entity adopts as required by Section 2256.025 (Selection of Authorized Brokers); or
(ii)
a depository institution with a main office or branch office in this state that the investing entity selects;

(B)

the broker or depository institution selected as described by Paragraph (A) arranges for the deposit of the funds in the banking deposits in one or more federally insured depository institutions, regardless of where located, for the investing entity’s account;

(C)

the full amount of the principal and accrued interest of the banking deposits is insured by the United States or an instrumentality of the United States; and

(D)

the investing entity appoints as the entity’s custodian of the banking deposits issued for the entity’s account:
(i)
the depository institution selected as described by Paragraph (A);
(ii)
an entity described by Section 2257.041 (Deposit of Securities with Custodian)(d); or
(iii)
a clearing broker dealer registered with the Securities and Exchange Commission and operating under Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3).

(b)

The following are not authorized investments under this section:

(1)

obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal;

(2)

obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest;

(3)

collateralized mortgage obligations that have a stated final maturity date of greater than 10 years; and

(4)

collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index.
Amended by Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 1454, Sec. 7, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 558, Sec. 1, eff. Sept. 1, 2001.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 1004 (H.B. 2226), Sec. 4, eff. June 17, 2011.
Acts 2017, 85th Leg., R.S., Ch. 773 (H.B. 1003), Sec. 2, eff. June 14, 2017.
Acts 2017, 85th Leg., R.S., Ch. 863 (H.B. 2647), Sec. 1, eff. June 15, 2017.
Acts 2017, 85th Leg., R.S., Ch. 874 (H.B. 2928), Sec. 1, eff. September 1, 2017.

Source: Section 2256.009 — Authorized Investments: Obligations Of, or Guaranteed by Governmental Entities, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­2256.­htm#2256.­009 (accessed Jun. 5, 2024).

2256.001
Short Title
2256.002
Definitions
2256.003
Authority to Invest Funds
2256.004
Applicability
2256.005
Investment Policies
2256.006
Standard of Care
2256.007
Investment Training
2256.008
Investment Training
2256.009
Authorized Investments: Obligations Of, or Guaranteed by Governmental Entities
2256.010
Authorized Investments: Certificates of Deposit and Share Certificates
2256.011
Authorized Investments: Repurchase Agreements
2256.012
Authorized Investments: Banker’s Acceptances
2256.013
Authorized Investments: Commercial Paper
2256.014
Authorized Investments: Mutual Funds
2256.015
Authorized Investments: Guaranteed Investment Contracts
2256.016
Authorized Investments: Investment Pools
2256.017
Existing Investments
2256.019
Rating of Certain Investment Pools
2256.020
Authorized Investments: Institutions of Higher Education
2256.021
Effect of Loss of Required Rating
2256.022
Expansion of Investment Authority
2256.023
Internal Management Reports
2256.024
Subchapter Cumulative
2256.025
Selection of Authorized Brokers
2256.026
Statutory Compliance
2256.051
Electronic Funds Transfer
2256.052
Private Auditor
2256.053
Payment for Securities Purchased by State
2256.054
Delivery of Securities Purchased by State
2256.055
Deposit of Securities Purchased by State
2256.0115
Authorized Investments: Securities Lending Program
2256.0201
Authorized Investments
2256.0202
Authorized Investments: Municipal Funds from Management and Development of Mineral Rights
2256.0203
Authorized Investments: Ports and Navigation Districts
2256.0204
Authorized Investments: Independent School Districts
2256.0205
Authorized Investments
2256.0206
Authorized Investments: Hedging Transactions
2256.0207
Authorized Investments: Public Junior College District Funds from Management and Development of Mineral Rights
2256.0208
Local Government Investment of Bond Proceeds and Pledged Revenue

Accessed:
Jun. 5, 2024

§ 2256.009’s source at texas​.gov