Tex. Gov't Code § 2256.010 · Subchapter A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES
AUTHORIZED INVESTMENTS: CERTIFICATES OF DEPOSIT AND SHARE CERTIFICATES.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A certificate of deposit or share certificate is an authorized investment under this subchapter if the certificate is issued by a depository institution that has its main office or a branch office in this state and is:
(1) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor;
(2) secured by obligations that are described by Section 2256.009(a), including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described by Section 2256.009(b); or
(3) secured in accordance with Chapter 2257 or in any other manner and amount provided by law for deposits of the investing entity.
(b) In addition to the authority to invest funds in certificates of deposit under Subsection (a), an investment in certificates of deposit made in accordance with the following conditions is an authorized investment under this subchapter:
(1) the funds are invested by an investing entity through:
(A) a broker that has its main office or a branch office in this state and is selected from a list adopted by the investing entity as required by Section 2256.025; or
(B) a depository institution that has its main office or a branch office in this state and that is selected by the investing entity;
(2) the broker or the depository institution selected by the investing entity under Subdivision (1) arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the investing entity;
(3) the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; and
(4) the investing entity appoints the depository institution selected by the investing entity under Subdivision (1), an entity described by Section 2257.041(d), or a clearing broker-dealer registered with the Securities and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for the investing entity with respect to the certificates of deposit issued for the account of the investing 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. 32, Sec. 1, eff. April 28, 1995.
Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
Acts 1997, 75th Leg., ch. 1421, Sec. 6, eff. Sept. 1, 1997.
Acts 2005, 79th Leg., Ch. 128 (H.B. 256), Sec. 1, eff. September 1, 2005.
Acts 2011, 82nd Leg., R.S., Ch. 1004 (H.B. 2226), Sec. 5, eff. June 17, 2011.
Acts 2017, 85th Leg., R.S., Ch. 874 (H.B. 2928), Sec. 2, eff. September 1, 2017.
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 a1428d2becc80d455cd758f52c33b6c1abc7972dd0caa7af71c05be0af1a7dd7
- 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
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Government Code
- Tex. Gov't Code § 2256.009AUTHORIZED INVESTMENTS: OBLIGATIONS OF, OR GUARANTEED BY GOVERNMENTAL ENTITIES.Printed as Section 2256.009(a) | Section 2256.009(b)
- Tex. Gov't Code § 2256.025SELECTION OF AUTHORIZED BROKERS.Printed as Section 2256.025
- Tex. Gov't Code ch. 2257COLLATERAL FOR PUBLIC FUNDSPrinted as Chapter 2257
- Tex. Gov't Code § 2257.041DEPOSIT OF SECURITIES WITH CUSTODIAN.Printed as Section 2257.041(d)
Cited by 1 provision
Provisions in this library whose text cites Tex. Gov't Code § 2256.010. Each shows the citation as that text prints it.
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