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These funds may be only used for the support, maintenance, and operation of the institution as provided for by law.

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Depositories shall be selected on the basis of competitive bids.

(a) The governing board of each institution may select one or more depositories as places of deposit for the funds enumerated in Section 51.002 of this code.

Venue for a suit to recover an amount claimed by the state to be due on a surety bond is in Travis County.(f) Notwithstanding any other provision of this section, the governing board of each institution may maintain unsecured deposits in a foreign bank as necessary to support the institution's academic and research operations in the foreign country in which the bank is located, provided that no appropriated or tuition funds other than those collected from students enrolled in the affected programs are deposited.

The depository banks selected may pledge their securities to protect the funds.(d) A depository shall pay interest on the deposits at a rate agreed on by the depository and the governing board.(e) Any surety bond furnished under the provisions of this section shall be payable to the governor and his successors in office.

Funds that are to be deposited in the depository bank or banks must be deposited within seven days from the date of receipt by the institution.(c) The governing board shall require adequate surety bonds or securities to be posted to secure the deposits and may require additional security at any time it deems the deposits inadequately secured.

If bids are taken orally, the bids shall be tabulated by the person taking the bids and made a part of the permanent records of the institution.(b) The funds shall either be deposited in the depository bank or banks or invested as authorized by Chapter 2256, Government Code (Public Funds Investment Act).

(a) A governing board shall adopt by rule or resolution a written investment policy for the investment of its institutional funds.(b) Not less than quarterly, an institution of higher education shall prepare and submit to the governing board of the institution a written report of the institution's institutional funds investment transactions for the preceding reporting period.(c) In addition to other information that may be required by the governing board, the report must contain:(1) a summary statement of each pooled fund group that states the beginning market value for the reporting period, additions and changes to the market value during the period, and the ending market value for the period; and(2) the book value and market value of each separately invested asset at the beginning and end of the reporting period by type of asset and fund type invested.(d) In this section:(1) "Governing board" means a governing board described in Section 51.0031(c).(2) "Institution of higher education" means an institution of higher education under the governance of a governing board to which this section applies.(3) "Pooled fund group" means an internally created fund of an institution of higher education in which one or more institutional accounts are invested.(4) "Separately invested asset" means an account of an institution of higher education that is not invested in a pooled fund group.

Interest received from the trust funds time deposits shall be available for loans, scholarships, fellowships, institutional research, faculty aid, and other lawful purposes.

PROVISIONS GENERALLY APPLICABLE TO HIGHER EDUCATIONSUBCHAPTER A.

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