VERNON'S TEXAS CIVIL STATUTES
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.
