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<br />BONDS-COUNTY, MUNICIPAL, ETC. Art. 842a-2
<br />Title 22
<br />,(5) certificates of deposit issued by state and national ban~ domiciled in this state that
<br />are:
<br />(A) guaranteed or insured by the Federal Deposit Insurance Corporation, or.its succes-
<br />
<br />sor; or. . ...., '", ., , .. ' . _ , ' "
<br />
<br />, (B) secured by'obligations that are described: by Subdivisions (1)-{4) of this subsection,
<br />which are intended to include all direcf1ederal agency or instrumentality issued mortgage
<br />backed securities that have a market value of not less than the principal amount of the
<br />certificates or in any other manner and amount provided by law for deposits of the
<br />investing entities;
<br />(6) certificates of deposit issued by savings and loan associations domiciled in this state
<br />that are: .
<br />(A) guaranteed or insured by the Federal Savings and Loan Insurance Corporation, or
<br />its successor; or', '
<br />.. (B) secured by obligations that are described'by Subdivisions (1)-{4) of this subsection,
<br />which are intended to include all direct federal agency or instrumentality issued mortgage
<br />backed securities that have a market value of not less than the principal amount of the
<br />certificates or in any other manner and amount provided by law for deposits of the
<br />. . investing entities;
<br />, (7) prime domestic bankers' acceptances;
<br />(8) commercial paper with a stated maturity of 270 days or less from the date of its
<br />issuance that either: ' .,
<br />(A) is rated not less than A-I, P-I, or the equivalent by at least two nationally
<br />recognized credit rating agencies; or . ,
<br />(B) is rated at least A-I, P-l, or the equivalent by at least one nationally recognized
<br />credit rating agency and is fully secured by an irrevocable letter of credit issued by a
<br />bank organized and existing under the laws of the United States or any state thereof;
<br />and
<br />(9) fully collateralized repurchase agreements having a defined termination date, se-
<br />cured by obligations described by Subdivision (1) of this subsection, pledged with a third
<br />party selected or approved. by the political entity, and placed through a primary govern-
<br />ment securities dealer, as defined by the Federal Reserve, or a bank domiciled in this
<br />state. . . ' .' . . '.' ' ,
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<br />Text ofsubsec. (a) as amended by Acts 1989, 71st Leg., ch. 693, 9 .4, and Acts
<br />1989, 71st Leg., ch. 750, 9 1 . .
<br />~.. Sec. 2.- (a) An incorporated city or town,: a county, a public school district, an
<br />institution of higher education as defined by,Section 61.003 of the Education Code, any
<br />nonprofit corporation or public funds investment pool created under The Interlocal
<br />Cooperation Act (Article 4413(32c), Vernon's Texas Civil Statutes) acting on behalf of any
<br />of those entities, or a navigation district organized under Article III, Section 52, or Article
<br />XVI, Section 59, of the Texas Constitution may, in accordance with this Act, purchase,
<br />sell, and invest its funds and fund~ under its control in ,the following:' .
<br />(1) obligations of the United States or its agencies arid instrumentalities; .
<br />(2) direct obligations of the State of Texas or its agencies;' , .. . ,
<br />(3) other obligations, the principal of an~ interest on which are"~con~ition~lly gUaran-
<br />teed or insl:lred by the State of Texas or the' United States; . .: ... .
<br />(4) obligations of states, agencies, counties, cities" an~ other political subdivisions of
<br />any state having been rated. as to investment quality by a nationally recognized invest-
<br />ment rating firm and having .received a rating of no~ less than A or its equivalent;
<br />(5) certificates of deposit issued by state and national banks domi.ciled i~ this s~te that
<br />are: .' ,
<br />',' fA) guaranteed or insured by the Federai Deposit Insurance Corporation, or Its succes-
<br />sor; or. . '.' I ." : . . 1'" t".. . ~: .~'.
<br />(B) secured by obligations that are described by Subdivisions (I)-{4) of this subsection,
<br />which are intended to include all direct agency or..instrumentality issued mortgage backed
<br />securities rated AAA by a nationally recognized rating agency, or by Chapter 726, Acts of
<br />305.
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