(a) A certificate of deposit or share certificate is an authorized investment under this subchapter if the certificate is issued by a depository institution that has its main office or a branch office in this state and is:
(1) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor;
(2) secured by obligations that are described by § 2256.009(a), including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described by § 2256.009(b); or
(3) secured in accordance with Chapter 2257 or in any other manner and amount provided by law for deposits of the investing entity.
(b) In addition to the authority to invest funds in certificates of deposit under Subsection (a), an investment in certificates of deposit made in accordance with the following conditions is an authorized investment under this subchapter:
(1) the funds are invested by an investing entity through:
(A) a broker that has its main office or a branch office in this state and is selected from a list adopted by the investing entity as required by § 2256.025; or
(B) a depository institution that has its main office or a branch office in this state and that is selected by the investing entity;
(2) the broker or the depository institution selected by the investing entity under Subdivision (1) arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the investing entity;
(3) the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; and
(4) the investing entity appoints the depository institution selected by the investing entity under Subdivision (1), an entity described by § 2257.041(d), or a clearing broker-dealer registered with the Securities and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. § 240.15c3-3) as custodian for the investing entity with respect to the certificates of deposit issued for the account of the investing entity.