Tex. Ins. Code § 424.105 · Subchapter C. INVESTMENT POOLS
SHORT-TERM INVESTMENT POOL: CERTAIN SHORT-TERM OBLIGATIONS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Obligations contained in a short-term investment pool must meet the requirements of this section.
(b) The obligations must:
(1) have a rating by the securities valuation office of one or two, or an equivalent rating issued by a nationally recognized statistical rating organization recognized by the securities valuation office; or
(2) be issued by an issuer with outstanding obligations that have a rating described by Subdivision (1).
(c) The obligations must have:
(1) a remaining maturity of 397 days or less or a put that:
(A) entitles the holder to receive the principal amount of the obligation; and
(B) may be exercised through maturity at specified intervals not exceeding 397 days; or
(2) a remaining maturity of three years or less and a floating interest rate that resets at least quarterly on the basis of a current short-term index and is not subject to a maximum limit, if the obligations do not have an interest rate that varies inversely to market interest rate changes.
(d) For purposes of this section, a current short-term index is:
(1) a federal funds rate;
(2) the prime rate;
(3) the rate for treasury bills;
(4) the London InterBank Offered Rate; or
(5) the rate for commercial paper.
Notes and commentary — not statutory text
History
Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017), Sec. 1, eff. April 1, 2007.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/IN/htm/IN.424.htm
- Text hash
- sha256 a438a1d7412743ba89766c3ce886c0c9bb026b322b5a16b9a952253436f96ea8
- 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 1 provision
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