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Senate Bill 1543 |
Senate Author: Wentworth |
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Effective: 6-17-11 |
House Sponsor: Larson |
Senate Bill 1543 amends the Government Code to authorize an independent school district with an average daily attendance of 50,000 or more to purchase, sell, and invest its funds and funds under its control in corporate bonds that, at the time of purchase, are rated by a nationally recognized investment rating firm at not lower than "AA-" or the equivalent and have a stated final maturity that is not later than the third anniversary of the date the corporate bonds were purchased if the district amends its investment policy, adopts procedures for monitoring and liquidating such investments, and identifies the funds eligible to be invested in corporate bonds. The bill limits the amount that a district is authorized to invest in corporate bonds and requires the investment officer of a district to sell corporate bonds in which the district has invested its funds within a specified period after an action by a nationally recognized investment rating firm that would adversely affect the district's investment in such bonds. Corporate bonds are not an eligible investment for a public funds investment pool.