Tex. Gov't Code Section 2256.010
Authorized Investments: Certificates of Deposit and Share Certificates


(a)

A certificate of deposit or share certificate is an authorized investment under this subchapter if the certificate is issued by a depository institution that has its main office or a branch office in this state and is:

(1)

guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor;

(2)

secured by obligations that are described by Section 2256.009 (Authorized Investments: Obligations Of, or Guaranteed by Governmental Entities)(a), including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described by Section 2256.009 (Authorized Investments: Obligations Of, or Guaranteed by Governmental Entities)(b); or

(3)

secured in accordance with Chapter 2257 (Collateral for Public Funds) or in any other manner and amount provided by law for deposits of the investing entity.

(b)

In addition to the authority to invest funds in certificates of deposit under Subsection (a), an investment in certificates of deposit made in accordance with the following conditions is an authorized investment under this subchapter:

(1)

the funds are invested by an investing entity through:

(A)

a broker that has its main office or a branch office in this state and is selected from a list adopted by the investing entity as required by Section 2256.025 (Selection of Authorized Brokers); or

(B)

a depository institution that has its main office or a branch office in this state and that is selected by the investing entity;

(2)

the broker or the depository institution selected by the investing entity under Subdivision (1) arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the investing entity;

(3)

the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; and

(4)

the investing entity appoints the depository institution selected by the investing entity under Subdivision (1), an entity described by Section 2257.041 (Deposit of Securities with Custodian)(d), or a clearing broker-dealer registered with the Securities and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for the investing entity with respect to the certificates of deposit issued for the account of the investing entity.
Amended by Acts 1995, 74th Leg., ch. 32, Sec. 1, eff. April 28, 1995; Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1421, Sec. 6, eff. Sept. 1, 1997.
Amended by:
Acts 2005, 79th Leg., Ch. 128 (H.B. 256), Sec. 1, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 1004 (H.B. 2226), Sec. 5, eff. June 17, 2011.
Acts 2017, 85th Leg., R.S., Ch. 874 (H.B. 2928), Sec. 2, eff. September 1, 2017.

Source: Section 2256.010 — Authorized Investments: Certificates of Deposit and Share Certificates, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­2256.­htm#2256.­010 (accessed Mar. 23, 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:
Mar. 23, 2024

§ 2256.010’s source at texas​.gov