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Executing T-SQL with a Proxy Account

Tom Collins answers a question:

I have some t-sql code added to a job step on a SQL Server Agent job. The problem is I need to run the code as RUNAS . I though of executing the job with a proxy account – so progressed with the Credential & proxy set up.    But I still can’t view the Proxy\Credential in the RunAs list . Is there a way around this problem?

Read on to learn why and for the answer.