A public security is:

1. (1) a negotiable instrument;
2. (2) an investment security to which Chapter 8, Business & Commerce Code, applies; and

3. (3) a legal and authorized investment for:

   1. (A) an insurance company;
   2. (B) a fiduciary or trustee; or
   3. (C) a sinking fund of a municipality or other political subdivision or public agency of this state.

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.