SECTION 1. Section
2256.009(a), Government Code, is amended to read as follows:
(a) Except as provided by
Subsection (b), the following are authorized investments under this
subchapter:
(1) obligations, including
letters of credit, of the United States or its agencies and
instrumentalities;
(2) direct obligations of
this state or its agencies and instrumentalities;
(3) collateralized mortgage
obligations directly issued by a federal agency or instrumentality of the
United States, the underlying security for which is guaranteed by an agency
or instrumentality of the United States;
(4) other obligations, the
principal and interest of which are unconditionally guaranteed or insured
by, or backed by the full faith and credit of, this state or the United
States or their respective agencies and instrumentalities, including
obligations that are fully guaranteed or insured by the Federal Deposit
Insurance Corporation or by the explicit full faith and credit of the
United States;
(5) obligations of states,
agencies, counties, cities, and other political subdivisions of any state
rated as to investment quality by a nationally recognized investment rating
firm not less than A or its equivalent; [and]
(6) bonds issued, assumed,
or guaranteed by the State of Israel; and
(7) interest-bearing
banking deposits or other obligations
that are guaranteed or insured by:
(A) the Federal Deposit
Insurance Corporation or its successor; or
(B) the National Credit
Union Share Insurance Fund or its successor.
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SECTION 1. Section
2256.009(a), Government Code, is amended to read as follows:
(a) Except as provided by
Subsection (b), the following are authorized investments under this
subchapter:
(1) obligations, including
letters of credit, of the United States or its agencies and
instrumentalities;
(2) direct obligations of
this state or its agencies and instrumentalities;
(3) collateralized mortgage
obligations directly issued by a federal agency or instrumentality of the
United States, the underlying security for which is guaranteed by an agency
or instrumentality of the United States;
(4) other obligations, the
principal and interest of which are unconditionally guaranteed or insured
by, or backed by the full faith and credit of, this state or the United
States or their respective agencies and instrumentalities, including
obligations that are fully guaranteed or insured by the Federal Deposit
Insurance Corporation or by the explicit full faith and credit of the
United States;
(5) obligations of states,
agencies, counties, cities, and other political subdivisions of any state
rated as to investment quality by a nationally recognized investment rating
firm not less than A or its equivalent; [and]
(6) bonds issued, assumed,
or guaranteed by the State of Israel;
(7) interest-bearing
banking deposits that are guaranteed or insured by:
(A) the Federal Deposit
Insurance Corporation or its successor; or
(B) the National Credit
Union Share Insurance Fund or its successor; and
(8) interest-bearing banking deposits other than those
described by Subdivision (7) if:
(A) the funds invested in the banking deposits are invested
through:
(i) a broker with a main office or branch office in this state
that the investing entity selects from a list the governing body or
designated investment committee of the entity adopts as required by Section
2256.025; or
(ii) a depository institution with a main office or branch
office in this state that the investing entity selects;
(B) the broker or depository institution selected as described
by Paragraph (A) arranges for the deposit of the funds in the banking
deposits in one or more federally insured depository institutions,
regardless of where located, for the investing entity's account;
(C) the full amount of the principal and accrued interest of
the banking deposits is insured by the United States or an instrumentality
of the United States; and
(D) the investing entity appoints as the entity's custodian of
the banking deposits issued for the entity's account:
(i) the depository institution selected as described by
Paragraph (A);
(ii) an entity described by Section 2257.041(d); or
(iii) a clearing broker dealer registered with the Securities
and Exchange Commission and operating under Securities and Exchange
Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3).
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