|
<br />BONDS-COUNTY, MUNICIPAL, ETC. Art. 842a-2
<br />Title 22
<br />' Bide
<br />Sec. 3. (a) Investments under Section 2(b)~ of this Act may be made only after
<br />competitive bids are solicited from at least three banks as provided by this section. The
<br />bids may be solicited orally. '
<br />(b) An incorporated city or town or a public school district must attempt to solicit bids
<br />initially from banks located within its boundaries. If there are not three banks available
<br />for the investments within the city's, ti»rn's, or public school district's boundaries, the
<br />city, town, or public school district may solicit bids from banks located within the county
<br />or counties in which the city, town, or public school district is located in addition to those
<br />banks, if any, that are located within the boundaries of the city, town, or public school
<br />district. If there are not three banks available for the investments within the boundaries
<br />of the city, town, or public school district, or of the county or counties in which it is
<br />located, the city, town, or public school district may solicit bids from any bank within the
<br />state in addition to those banks, if any, that are located within the boundaries of the city,
<br />town, public school district, county, or counties.
<br />(c) A county must attempt to solicit bids initially from banks located within its
<br />boundaries. If there are not three banks available for the investments within the county,
<br />the county may solicit bids from any bank within the state in addition to those banks, if
<br />any, that are located within the boundaries of the county.
<br />(d) An institution of higher education as defined by Section 61.003 of the Education
<br />Code or a navigation district must solicit bids from at least three banks located within the
<br />state.
<br />(e) A nonprofit corporation acting on behalf of an incorporated city or town, a county, a
<br />public school district, or an institution of higher education as defined by Section 61.003 of
<br />the Education Code shall follow the procedures identified in Subsection (b), (c), or (d) of
<br />this section, as applicable to the entity on behalf of which the nonprofit corporation is
<br />acting. , . ..
<br />(f) If a bank has notified a governmental entity or nonprofit corporation that it is
<br />unable or unwilling to bid for investments under Section 2(b) of this Act, the governmen-
<br />tal entity or nonprofit corporation that receives the notification may 'presume that the
<br />bank is unable or unwilling to bid for the investments until the bank notifies the
<br />governmental entity or nonprofit corporation otherwise in writing.
<br />Standard oC Cnre
<br />Sec. 4. Investments shall be made with judgment and care, under circumstances then
<br />prevailing, that persons of prudence, discretion, and intelligence exercise in the manage-
<br />ment of their own affairs, not for speculation, but for investment, considering the
<br />probable safety of their capital as well as the probable income to be derived.
<br />Wr(tten Policies
<br />Sec. 5. (a) Investments shall be -made in accordance with written policies approved by
<br />the governing body. The investment policies must address liquidity, diversification,
<br />safety of principal, yield, maturity, and quality and capability of investment management,
<br />with primary emphasis on safety and liquidity.
<br />(b) A governing body may provide in its written policies that bids for certificates of
<br />deposit be solicited orally, in wrir:ipg, electronically, or in any combination of those
<br />methods.
<br />Nonapplication to Retirement Funds
<br />Sec. 6. This Act does not apply to the investment of funds under the control of a
<br />public retirement system, as defined by Section 12.001(2), Title 110B, Revised Statutes.
<br />~ Renumbered as V.T.C.A. Government Code, § 802.002(2).
<br />Authority is Additionnl
<br />Sec. T. The authority granted by this Act is in addition to that granted by other law.
<br />Acts 1987, 70th Leg., ch. 889, §§ 1 to 7, eff. Aug. 31, 198?. Sec. 2 amended by Acts 1989, 71st Leg.,
<br />ch. 628, § 1, eff. Aug. 28, 1989; Sec. 2(a) amended by Acts 1989, 71st Leg., ch. 39, § 1, eff. April 26,
<br />1989; Acts 1989, ?1st Leg., ch. 693, § 4, eff. Aug. 28, 1989; Acta 1989, 71st Leg., ch. 7b0, § 1, eff.
<br />307
<br />
|