Texas Statutes (Last Updated: January 4, 2014) |
GOVERNMENT CODE |
Title 10. GENERAL GOVERNMENT |
Subtitle F. STATE AND LOCAL CONTRACTS AND FUND MANAGEMENT |
Chapter 2257. COLLATERAL FOR PUBLIC FUNDS |
Subchapter C. CUSTODIAN; PERMITTED INSTITUTION |
Sec. 2257.041. DEPOSIT OF SECURITIES WITH CUSTODIAN
-
(a) In addition to other authority granted by law, a depository for a public entity other than a state agency may deposit with a custodian a security pledged to secure a deposit of public funds.
(b) At the request of the public entity, a depository for a public entity other than a state agency shall deposit with a custodian a security pledged to secure a deposit of public funds.
(c) A depository for a state agency shall deposit with a custodian a security pledged to secure a deposit of public funds. The custodian and the state agency shall agree in writing on the terms and conditions for securing a deposit of public funds.
(d) A custodian must be approved by the public entity and be:
(1) a state or national bank that:
(A) is designated by the comptroller as a state depository;
(B) has its main office or a branch office in this state; and
(C) has a capital stock and permanent surplus of $5 million or more;
(2) the Texas Treasury Safekeeping Trust Company;
(3) a Federal Reserve Bank or a branch of a Federal Reserve Bank;
(4) a federal home loan bank; or
(5) a financial institution authorized to exercise fiduciary powers that is designated by the comptroller as a custodian pursuant to Section 404.031(e).
(e) A custodian holds in trust the securities to secure the deposit of public funds of the public entity in the depository pledging the securities.