No. 31,274 IN THE PROBATE COURT NO. 1 OF TRAVIS COUNTY, TEXAS ORDER CREATING DEFAULT INVESTMENT PLAN IN ALL GUARDIANSHIP ESTATES AND REQUIRING A GUARDIAN OF THE ESTATE TO ADHERE TO THE DEFAULT INVESTMENT PLAN UNTIL OTHERWISE AUTHORIZED BY THE COURT TO IMPLEMENT A DIFFERENT INVESTMENT PLAN Comes now the Probate Court No. 1 of Travis County, Texas, and finds that there is a necessity for an order regarding the administration of guardianship estates under the Court’s supervision. WHEREAS, the Court finds that the Court previously entered an administrative order requiring a guardian of an estate, whether appointed prior to or after September 1, 2003, to comply with the changes made by Sections 17 – 29 of HB 1470 enacted by the 78th Texas Legislature, including, but not limited to, the requirement to file an application for approval of an investment plan pursuant to Probate Code Section 855B; WHEREAS, the Court further finds that it would be in the best interests of a ward of a guardianship estate supervised by this Court if the Court developed a default investment plan to ensure the safety of a ward’s assets; and WHEREAS, the Court further finds that it would be in the best interests of a ward of a guardianship estate supervised by this Court if a ward’s assets were invested according to the Court’s default investment plan unless and until the Court otherwise authorizes a guardian to implement a different investment plan. IT IS THEREFORE ORDERED that: 1. For all guardianship estates, existing or otherwise yet to be created, wherein the Court has not approved an investment strategy, whether pursuant to Section 855B or another provision of the Probate Code, a guardian of the estate shall invest, without prior Court approval, the sums that exceed the amount necessary for the maintenance and support of a ward or others the ward supports in the following default investments: (a) interest-bearing time deposits that may be withdrawn on or before one year after demand in a bank that does business in the State of Texas where the payment of the time deposit is insured by the Federal Deposit Insurance Corporation; (b) shares or share accounts of a state savings and loan association or savings bank with its main office or a branch office in the State of Texas if the payment of the shares or share accounts is insured by the Federal Deposit Insurance Corporation; American LegalNet, Inc. www.USCourtForms.com (c) shares or share accounts of a federal savings and loan association or savings bank with its main office or a branch office in the State of Texas if the payment of the shares or share accounts is insured by the Federal Deposit Insurance Corporation; (d) bonds or other obligations of the United States; (e) tax-supported bonds of the State of Texas; (f) tax-supported bonds of a county, district, or political subdivision of the State of Texas issued for road purposes under Section 52, Article III, of the Texas Constitution that are supported for by a tax unlimited as to rate or amount; (g) tax-supported bonds of a county, district, or political subdivision of the State of Texas issued for purposes other than roads, but only if the net funded debt of the county, district, or subdivision that issues the bonds does not exceed 10 percent of the assessed value of taxable property in the county, district, or subdivision; (h) tax-supported bonds of an incorporated city or town of the State of Texas issued for road purposes under Section 52, Article III, of the Texas Constitution that are supported for by a tax unlimited as to rate or amount; (i) tax-supported bonds of an incorporated city or town of the State of Texas issued for purposes other than roads, but only if the net funded debt of the city or town does not exceed 10 percent of the assessed value of taxable property in the city or town less that part of the debt incurred for acquisition or improvement of revenue-producing utilities, the revenues of which are not pledged to support other obligations of the city or town; (j) collateral bonds of companies incorporated under the laws of the State of Texas, having a paid-in capital of $1,000,000.00 or more, when the bonds are a direct obligation of the company that issues the bonds and are specifically secured by first mortgage real estate notes or other securities pledged with a trustee 2. Unless a guardian elects to pursue an investment strategy different than the one incorporated in the default investment plan created by the Court, this order absolves the guardian of the duty to file an investment plan pursuant to Probate Code Section 855B. 3. Unless the Court authorizes, or has authorized, a guardian to implement an investment plan different than the default investment plan created by the Court, the assets of a ward shall remain invested in the above-listed investments until otherwise modified by the Court. 4. All orders approving investment strategies different than the default investment plan created by the Court that were signed before the date the Court signs this order shall remain in effect until otherwise modified by the Court. 5. This order takes effect January 1, 2004. Signed on this the ______ day of December 2003. _______________________________ GUY HERMAN, JUDGE PRESIDING American LegalNet, Inc. www.USCourtForms.com