Texas Insurance Code - Section 424.105. Short-Term Investment Pool: Certain Short-Term Obligations
Legal Research Home >
Texas Lawyer > Insurance Code > Texas Insurance Code - Section 424.105. Short-Term Investment Pool: Certain Short-Term Obligations
§ 424.105. SHORT-TERM INVESTMENT POOL: CERTAIN
SHORT-TERM OBLIGATIONS. (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.
Added by Acts 2005, 79th Leg., ch. 727, § 1, eff. April 1, 2007.
Section: 424.072 424.073 424.074 424.101 424.102 424.103 424.104 424.105 424.106 424.107 424.108 424.109 424.110 424.111 424.112
Last modified: August 11, 2007
|
