{"data":{"id":"us-tx/tex.-government-code-2256.0115","jurisdiction":"us-tx","citation":"Tex. Government Code § 2256.0115","heading":"AUTHORIZED INVESTMENTS: SECURITIES LENDING PROGRAM.","body":"(a) A securities lending program is an authorized investment under this subchapter if it meets the conditions provided by this section.\n(b) To qualify as an authorized investment under this subchapter:\n(1) the value of securities loaned under the program must be not less than 100 percent collateralized, including accrued income;\n(2) a loan made under the program must allow for termination at any time;\n(3) a loan made under the program must be secured by:\n(A) pledged securities described by Section 2256.009;\n(B) pledged irrevocable letters of credit issued by a bank that is:\n(i) organized and existing under the laws of the United States or any other state; and\n(ii) continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent; or\n(C) cash invested in accordance with Section:\n(i) 2256.009;\n(ii) 2256.013;\n(iii) 2256.014; or\n(iv) 2256.016;\n(4) the terms of a loan made under the program must require that the securities being held as collateral be:\n(A) pledged to the investing entity;\n(B) held in the investing entity's name; and\n(C) deposited at the time the investment is made with the entity or with a third party selected by or approved by the investing entity;\n(5) a loan made under the program must be placed through:\n(A) a primary government securities dealer, as defined by 5 C.F.R. Section 6801.102(f), as that regulation existed on September 1, 2003; or\n(B) a financial institution doing business in this state; and\n(6) an agreement to lend securities that is executed under this section must have a term of one year or less.\nAdded by Acts 2003, 78th Leg., ch. 1227, Sec. 1, eff. Sept. 1, 2003.","path":["GOVERNMENT CODE","TITLE 10. GENERAL GOVERNMENT","SUBTITLE F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT","CHAPTER 2256. PUBLIC FUNDS INVESTMENT","SUBCHAPTER A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES"],"source_url":"https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2256.htm#2256.0115","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:47:16Z","sha256":"0c4959cb61f26f2a9ebbf17f0ae33c8f294d49fa2acbf2b9d17eececf2f41965","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-government-code-2256.011","next":"us-tx/tex.-government-code-2256.012"},"notice":"GroundRules: Original legal text. Not legal advice."}