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Texas Statutes (Last Updated: January 4, 2014) |
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GOVERNMENT CODE |
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Title 10. GENERAL GOVERNMENT |
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Subtitle F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT |
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Chapter 2256. PUBLIC FUNDS INVESTMENT |
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Subchapter A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES |
Sec. 2256.011. AUTHORIZED INVESTMENTS: REPURCHASE AGREEMENTS
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(a) A fully collateralized repurchase agreement is an authorized investment under this subchapter if the repurchase agreement:
(1) has a defined termination date;
(2) is secured by a combination of cash and obligations described by Section 2256.009(a)(1); and
(3) requires the securities being purchased by the entity or cash held by the entity to be pledged to the entity, held in the entity's name, and deposited at the time the investment is made with the entity or with a third party selected and approved by the entity; and
(4) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state.
(b) In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date obligations described by Section 2256.009(a)(1), at a market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement.
(c) Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered.
(d) Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the authorized investments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement.