Sec. 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 (H.B. 2017), Sec. 1, eff. April 1, 2007.