Texas § IN.425.126 - RISK CONTROL TRANSACTIONS
Full text of Texas The Texas Constitution § IN.425.126 — RISK CONTROL TRANSACTIONS, with citation guidance and answers to common questions.
§ IN.425.126. RISK CONTROL TRANSACTIONS
RISK CONTROL TRANSACTIONS: DERIVATIVE USE PLAN. (a) Before an insurance company enters into a derivative transaction, the company's board of directors must approve a derivative use plan as part of the investment plan required by Section 425.105 . (b) The derivative use plan must: (1) describe investment objectives and risk constraints, such as counterparty exposure amounts; (2) define permissible transactions identifying the risks to be hedged or the assets or liabilities being replicated; and (3) require compliance with internal control procedures. Added by Acts 2005, 79th Leg., Ch. 727 (H.B. 2017 ), Sec. 1, eff. April 1, 2007.
Frequently Asked Questions About Texas § IN.425.126
What does The Texas Constitution § IN.425.126 cover?
Section IN.425.126 ("RISK CONTROL TRANSACTIONS") 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 § IN.425.126?
A common citation format is "The Texas Constitution § IN.425.126" (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 § IN.425.126 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.