Tex. Gov't Code § 2256.006 · Subchapter A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES
STANDARD OF CARE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Investment of funds shall be governed by the following investment objectives, in order of priority:
(1) preservation and safety of principal;
(2) liquidity; and
(3) yield.
(b) In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration:
(1) the investment of all funds, or funds under the entity's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and
(2) whether the investment decision was consistent with the written investment policy of the entity.
Notes and commentary — not statutory text
History
Added by Acts 1993, 73rd Leg., R.S., Ch. 268 (S.B. 248), Sec. 1, eff. September 1, 1993.
Amended by:
Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2256.htm
- Text hash
- sha256 f80babea4f9cd0c7c1c7258f2ac4eb8f19a8aa60fa09f8100295acb95d5538fd
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 3 provisions
Provisions in this library whose text cites Tex. Gov't Code § 2256.006. Each shows the citation as that text prints it.
Finance Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.