|The Public Funds Investment Act (Government Code, Chapter 2256) requires The Woodlands Township to review its Investment Policies annually and approve a resolution adopting such policies.
The attached Resolution Adopting Investment Polices and Guidelines for The Woodlands Township was prepared by legal counsel and reviewed by the Township’s financial consultant and Investment Committee. The policies and guidelines are the same as those adopted in 2014 except for one revision, summarized below.
• Section 7 of Exhibit B (the form of Collateral Security Agreement) includes language that complies with a federal law that allows the Federal Home Loan Bank of Dallas (“FHLB Dallas”), when acting as a custodian of collateral pledged by a bank to secure a depositor’s funds exceeding $250,000, to forward trust receipts pertaining to such collateral directly to the bank instead of the depositor. Concurrently, FHLB Dallas will provide instructions to the bank to then immediately forward the trust receipts to the depositor.
At its meeting on May 21, 2015, the Investment Committee recommended that the Board of Directors adopt Resolution No. 005-15 Adopting Investment Policies and Guidelines for The Woodlands Township, which includes the revision outlined above.