Tex.
Gov't Code Section 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 (Authorized Investments: Obligations Of, or Guaranteed by Governmental Entities);(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.
Source:
Section 2256.0115 — Authorized Investments: Securities Lending Program, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2256.htm#2256.0115 (accessed Dec. 2, 2023).
