Texas § 424.105 SHORT-TERM INVESTMENT POOL: CERTAIN SHORT-TERM OBLIGATIONS.

Texas Statutes

§ 424.105 — SHORT-TERM INVESTMENT POOL: CERTAIN SHORT-TERM OBLIGATIONS.

Texas § 424.105

Code INInsurance Code

This text of Texas § 424.105 (SHORT-TERM INVESTMENT POOL: CERTAIN SHORT-TERM OBLIGATIONS.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Insurance Code Code Ann. § 424.105 (2026).

Text

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

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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.