Tex. Water Code Section 152.254
Investment of Money in Hedging Transaction

(a)

Except as provided by Subsection (b), the board of directors of a river authority may determine and designate the amount of money to be invested in a hedging transaction.

(b)

The board of directors of the river authority by formal policy shall regulate the investment of money in hedging contracts. An investment may be made only for hedging purposes. The policy must provide restrictions and procedures for making an investment that a person of ordinary prudence, discretion, and intelligence, exercising the judgment and care under the circumstances then prevailing, would follow in the management of the person’s own affairs, not in regard to speculation but in regard to the permanent disposition of the person’s money, considering:

(1)

the probable income; and

(2)

the probable safety of the person’s capital.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 26, eff. Sept. 1, 1999.

Source: Section 152.254 — Investment of Money in Hedging Transaction, https://statutes.­capitol.­texas.­gov/Docs/WA/htm/WA.­152.­htm#152.­254 (accessed Jun. 5, 2024).

152.001
Applicability 152.002
Application of Other Law 152.051
Creation of Nonprofit Corporation 152.052
Powers of Nonprofit Corporation 152.053
Board of Directors 152.054
Supervision by Board of Directors of River Authority 152.055
Liability of Corporate Property for Taxes and Special Assessments 152.056
Transfer of River Authority Assets to Corporation 152.057
Application of Other Law to River Authority 152.058
Guarantee and Other Credit Support Relating to Public Securities and Other Obligations 152.101
Authority to Participate in Energy or Water Conservation Program 152.102
Participation in Conservation Program by Person Other than River Authority 152.103
Public Purpose and Governmental Function 152.151
Definition 152.152
Applicability 152.153
Authority for Economic Development Program 152.154
Program Area 152.155
Establishment of Program 152.156
Participation in Program by Person Other than River Authority 152.157
Staffing and Funding of Program 152.158
Agreement 152.159
Guidelines for Assistance to Public Fire-fighting Organizations 152.160
Receipt of Electric Service as Condition for Participation in Program 152.161
Limitations on Use of Program 152.201
Authority to Issue Obligations 152.202
Sale or Exchange of Obligations 152.203
Independent Appraisal 152.251
Definition 152.252
Authority to Enter into Hedging Contract 152.253
Payment Considered Fuel Expense 152.254
Investment of Money in Hedging Transaction 152.255
Recoverability of Costs from Ratepayers 152.301
Electric Transmission Services and Facilities 152.302
Limitation on Electric Transmission Facilities
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Accessed:
Jun. 5, 2024

§ 152.254’s source at texas​.gov