Summary: CHAPTER 2256. PUBLIC FUNDS INVESTMENT
SUBCHAPTER A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES
§ 2256.001. Short Title
This chapter may be cited as the Public Funds Investment Act.
Amended by Acts 1995, 74th Leg., ch. 402, § 1, eff. Sept. 1, 1995.
§ 2256.002. Definitions
In this chapter:
(1) "Bond proceeds" means the proceeds from the sale of bonds, notes, and other obligations issued by an entity, and
reserves and funds maintained by an entity for debt service purposes.
(2) "Book value" means the original acquisition cost of an investment plus or minus the accrued amortization or
(3) "Funds" means public funds in the custody of a state agency or local government that:
(A) are not required by law to be deposited in the state treasury; and
(B) the investing entity has authority to invest.
(4) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code.
(5) "Investing entity" and "entity" mean an entity subject to this chapter and described by Section 2256.003.
(6) "Investment pool" means an entity created under this code to invest public funds jointly on behalf of the entities that
participate in the pool and whose investment objectives in order of priority are:
(A) preservation and safety of principal;
(B) liquidity; and