CHAPTER 8. SINKING FUNDS--INVESTMENTS, ETC.
VERNON'S CIVIL STATUTES
TITLE 22. BONDS--COUNTY, MUNICIPAL, ETC.
CHAPTER 8. SINKING FUNDS--INVESTMENTS, ETC.
Art. 842. FEDERAL FARM LOAN BONDS. All bonds issued under and by
virtue of the Federal Farm Loan Act, approved by the President of
the United States, July 17, 1916, and all consolidated bonds,
bonds, debentures, and other similar obligations issued by virtue
of the Farm Credit Act of 1971, P.L. 92-181, approved by the
President of the United States, December 10, 1971, and as
thereafter amended, shall be a lawful investment for all
fiduciary and trust funds in this State, and may be accepted as
security for all public deposits where deposits of bonds or
mortgages are authorized by law to be accepted. Such bonds shall
be lawful investments for all funds which may be lawfully
invested by guardians, administrators, trustees and receivers,
for saving departments of banks incorporated under the laws of
Texas, for banks, savings banks and trust companies chartered
under the laws of Texas, and for all insurance companies
chartered or transacting business under the laws of Texas, where
investments are required or permitted by the laws of this State.
Acts 1917, p. 122.
Amended by Acts 1973, 63rd Leg., p. 1252, ch. 455, Sec. 1, eff.
June 14, 1973.
Art. 842a. SECURITIES ISSUED BY FEDERAL AGENCIES; TEXAS
SECURITIES; INVESTMENTS. Hereafter, all mortgages, bonds,
debentures, notes, collateral trust certificates, and other such
evidences of indebtedness, issued or that hereafter may be issued
under the terms and provisions of the National Housing Act,
approved by the President of the United States on June 27, 1934,
as amended and as may hereafter be amended, and all "insured
accounts" issued or that may hereafter be issued by any
institution insured under the provisions of Title IV of the
National Housing Act, approved June 27, 1934, as amended and as
may hereafter be amended, or any evidences of indebtedness or
accounts that may be issued or insured by any lawful agency
created thereunder, all mortgages, bonds, consolidated bonds
issued under the Farm Credit Act of 1971, P.L. 92-181, and as
thereafter amended, debentures, notes, collateral trust
certificates, or other such evidences of indebtedness, which have
been or which may hereafter be issued by the Federal Home Loan
Bank Board, or any Federal Home Loan Bank, or the Home Owners'
Loan Corporation, or by the Federal Savings and Loan Insurance
Corporation, or by the Federal Farm Loan Board, or by any Federal
Land Bank, the Federal Intermediate Credit Banks, or Banks for
Cooperatives, or by any National Mortgage Association, or by any
entity, corporation or agency, which has been or which may be
created by or authorized by any Act, which has been enacted or
which may hereafter be enacted by the Congress of the United
States, or by any amendment thereto, which has for its purpose
the relief of, refinancing of or assistance to owners of
mortgaged or incumbered homes, farms, and other real estate, and
the improvement or financing or the making of loans on any real
property, shall hereafter be lawful investments for all fiduciary
and trust funds in this State, and may be accepted as security
for all public deposits where deposits of bonds, consolidated
bonds issued under the Farm Credit Act of 1971, P.L. 92-181, and
as thereafter amended, or mortgages are authorized by law to be
accepted. Such mortgages, bonds, consolidated bonds issued under
the Farm Credit Act of 1971, P.L. 92-181, and as thereafter
amended, debentures, notes, collateral trust certificates and
other such evidences of indebtedness, insured accounts shall be
lawful investments for all funds which may be lawfully invested
by guardians, administrators, trustees, and receivers, for
building and loan associations, savings departments of banks,
incorporated under the laws of Texas, for banks, savings banks
and trust companies, chartered under the laws of Texas, and all
insurance companies of every kind and character, chartered or
transacting business under the laws of Texas, where investments
are required or permitted by the laws of this State; providing
further that where such mortgages, bonds, consolidated bonds
issued under the Farm Credit Act of 1971, P.L. 92-181, and as
thereafter amended, debentures, notes, collateral trust
certificates, and other such evidences of indebtedness are issued
against and secured by promissory notes, or other obligations,
the payment of which is secured in whole or in part, by mortgage,
deed of trust, or other valid first lien upon real estate
situated in Texas, or where such mortgages, bonds, consolidated
bonds issued under the Farm Credit Act of 1971, P.L. 92-181, and
as thereafter amended, debentures, notes, collateral trust
certificates, or other such evidences of indebtedness are
acquired, directly or indirectly, in exchange for or in
substitution of notes, or other obligations, secured by mortgage,
deed of trust, or other valid first lien upon real estate
situated in Texas, or where such "insured accounts" are issued by
building and loan associations chartered under the laws of Texas
or by Federal Savings and Loan Associations domiciled in Texas,
then such mortgages, bonds, consolidated bonds issued under the
Farm Credit Act of 1971, P.L. 92-181, and as thereafter amended,
debentures, notes, collateral trust certificates or other such
evidences of indebtedness, "insured accounts," so issued and so
secured, or so acquired or insured, shall be regarded for
investment purposes by insurance companies as "Texas Securities,"
within the meaning of the laws of Texas governing such
investments.
The provisions of this Act shall be cumulative of all other
provisions of the Civil Statutes of the State of Texas, affecting
the investment of funds or moneys by fiduciaries, guardians,
administrators, trustees and receivers, building and loan
associations, savings departments of banks, incorporated and
doing business under the laws of Texas, commercial banks, savings
banks and trust companies, chartered and doing business under the
laws of Texas, insurance companies of any kind and character,
chartered and transacting business under the laws of Texas, and
all corporate creatures, organized and doing business under the
laws of Texas.
It is hereby declared to be the legislative intent to enact a
separate provision of this Act independent of all other
provisions, and the fact that any phrase, sentence, or clause of
this Act shall be declared unconstitutional, shall in no event
affect the validity of any of the provisions hereof.
Acts 1933, 43rd Leg., p. 406, ch. 160, Sec. 1. Amended by Acts
1935, 44th Leg., p. 33, ch. 12, Sec. 1; Acts 1935, 44th Leg., p.
90, ch. 31, Sec. 1; Acts 1941, 47th Leg., p. 1356, ch. 618, Sec.
1; Acts 1961, 57th Leg., p. 1119, ch. 507, Sec. 1.
Amended by Acts 1973, 63rd Leg., p. 1252, ch. 455, Sec. 2, eff.
June 14, 1973.
Art. 842a-1. OBLIGATIONS WHOLLY OR PARTLY INSURED BY UNITED
STATES OR STATE, INVESTMENT IN. Savings and loan associations,
banks, insurance companies, and other corporations or other
organizations, similar or dissimilar, are hereby authorized to
lend, and to buy and sell for their own account, obligations in
which except as to value of property and dignity of lien thereon
securing the obligation it is otherwise lawful for such investor
to invest its own funds, (by direct loan or by purchase), if the
entire amount of the indebtedness is insured or guaranteed in any
manner by the United States or by this State; or, if not so
wholly insured or guaranteed, the difference between the entire
amount of the indebtedness and that portion thereof insured or
guaranteed by the United States or by this State, does not exceed
the amount permissible under the law of this State, and meets the
requirements thereof as to value of property and dignity of lien
thereon, provided; further authorizing that any such lender may
make an unsecured loan not exceeding Five Hundred Dollars ($500),
if at least one-half thereof is guaranteed pursuant to the
Servicemen's Readjustment Act of 1944.
Acts 1945, 49th Leg., p. 315, ch. 230, Sec. 1.