Section 2256.0115 - Authorized Investments: Securities Lending Program(a) A securities lending program is an authorized investment under this subchapter if it meets the conditions provided by this section.(b) To qualify as an authorized investment under this subchapter:(1) the value of securities loaned under the program must be not less than 100 percent collateralized, including accrued income;(2) a loan made under the program must allow for termination at any time;(3) a loan made under the program must be secured by: (A) pledged securities described by Section 2256.009;(B) pledged irrevocable letters of credit issued by a bank that is: (i) organized and existing under the laws of the United States or any other state; and(ii) continuously rated by at least one nationally recognized investment rating firm at not less than A or its equivalent; or(C) cash invested in accordance with Section:(4) the terms of a loan made under the program must require that the securities being held as collateral be: (A) pledged to the investing entity;(B) held in the investing entity's name; and(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;(5) a loan made under the program must be placed through:(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(B) a financial institution doing business in this state; and(6) an agreement to lend securities that is executed under this section must have a term of one year or less.Tex. Gov't. Code § 2256.0115
Added by Acts 2003, 78th Leg., ch. 1227, Sec. 1, eff. 9/1/2003.