The board will invest the portfolio pursuant to the following principles in order of priority and in conformance with all federal and state statutes, rules or regulations:
- (1) understanding the suitability of the investment to the financial requirements of the board and authority;
- (2) preservation and safety of the principal;
- (3) maintaining liquidity in order to meet cash flow needs;
- (4) being mindful of the marketability of each investment should the need arise to liquidate the investment prior to maturity;
- (5) diversifying the portfolio; and
- (6) providing the highest investment return while satisfying all five previous priorities.
Source Note:The provisions of this §365.5 adopted to be effective June 6, 1996, 21 TexReg 4816; amended to be effective December 11, 1997, 22 TexReg 12075.