Texas § GV.2256.006 - STANDARD OF CARE
Full text of Texas The Texas Constitution § GV.2256.006 — STANDARD OF CARE, with citation guidance and answers to common questions.
§ GV.2256.006. STANDARD OF CARE
STANDARD OF CARE. (a) Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Investment of funds shall be governed by the following investment objectives, in order of priority: (1) preservation and safety of principal; (2) liquidity; and (3) yield. (b) In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: (1) the investment of all funds, or funds under the entity's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and (2) whether the investment decision was consistent with the written investment policy of the entity. Added by Acts 1993, 73rd Leg., R.S., Ch. 268 (S.B. 248 ), Sec. 1, eff. September 1, 1993. Amended by: Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.
Source: official Texas text · Last verified 2026-08-27
Frequently Asked Questions About Texas § GV.2256.006
What does The Texas Constitution § GV.2256.006 cover?
Section GV.2256.006 ("STANDARD OF CARE") is part of the The Texas Constitution, the codified statutory law of Texas. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Texas § GV.2256.006?
A common citation format is "The Texas Constitution § GV.2256.006" (Texas). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Texas law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Texas official source linked on this page or consult a licensed Texas attorney.
How does Texas § GV.2256.006 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Texas can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Texas.