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<br />BONDS-COUNTY, MUNICIPAL, ETC. A,1'tr. 842a-2
<br />Title 22
<br />,(6) certificates of deposit issued by state and national banks domiciled in this state that
<br />are:
<br />(A) guaranteed or insured by the Federal Deposit Insurance Corporation, or •its succes-
<br />sor; or .. ~ .... ...
<br />• (B) secured by obligations that are described by Subdivisions (1}(4) of this subsection,
<br />which are intended to include all direct~ed'eral 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 leas 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) ie rated not less than A-1, P-1, or the equivalent by at least two nationally
<br />recognized credit rating agencies; or
<br />(B) is rated at least A-1, P-1, 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. '
<br />Text of subset. (a) as amended by Acts 1989, 71st Leg., ch. 69J, § .¢, and Acts
<br />1989, 71st Lehr., ch. 750, § 1
<br />F~ 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 funds under its control in .the following: •
<br />(1) obligations of the United States or its agencies and instrumentalities;
<br />(2) direct obligations of the State of Texas or its agencies;
<br />(3) other obligations, the principal of and interest on which are •unconditionally guaran-
<br />teed or insured by the State of Texas or the' United States; •
<br />(4) obligations of states, agencies, counties, citiea,~ and 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 not less than A or its equivalent;
<br />(6) certificates of deposit issued by state and national banks domiciled in this state that
<br />are: ..
<br />~•• (A) guaranteed or insured by the Federal Deposit Insurance Corporation, or its succes-
<br />sor; or. ... .. .. ,..
<br />(B) secured by obligations that are described by Subdivisions (1}{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
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