Sec. 845.303. SECURITIES LENDING. (a) The board of trustees, in the exercise of its discretion to manage the assets of the retirement system, may select one or more commercial banks, depository trust companies, or other entities to serve as custodian or custodians of the system's securities and to lend the securities under rules adopted by the board of trustees and as required by this section.
(b) To be eligible to lend securities under this section, a bank or brokerage firm must:
(1) be experienced in the operations of a fully secured securities lending program;
(2) maintain capital adequate in the prudent judgment of the retirement system to assure the safety of the securities;
(3) execute an indemnification agreement satisfactory in form and content to the retirement system; and
(4) require any securities broker or dealer to whom it lends securities belonging to the retirement system to deliver to and maintain with the custodian collateral in the form of cash or United States government securities, the market value of which must equal not less than 100 percent of the market value, from time to time, of the loaned securities.
Acts 1981, 67th Leg., p. 1876, ch. 453, Sec. 1, eff. Sept. 1, 1981. Renumbered from Vernon's Ann.Civ.St. Title 110B, Sec. 55.303 by Acts 1989, 71st Leg., ch. 179, Sec. 1, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 245, Sec. 35, eff. May 27, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 873 (H.B. 1587), Sec. 75, eff. January 1, 2008.
Section: Previous 845.204 845.205 845.206 845.207 845.208 845.301 845.302 845.303 845.305 845.306 845.307 845.308 845.309 845.310 845.311 NextLast modified: September 28, 2016