Texas Government Code 825.304 – Nominee to Hold Securities
Current as of: 2024 | Check for updates
|
Other versions
(a) The assets of the retirement system may be held in the name of agents, nominees, depository trust companies, or other entities designated by the board of trustees.
(b) The records and all relevant reports or accounts of the retirement system must show the ownership interest of the retirement system in these assets and the facts regarding the system’s holdings.
Terms Used In Texas Government Code 825.304
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Indemnification: In general, a collateral contract or assurance under which one person agrees to secure another person against either anticipated financial losses or potential adverse legal consequences. Source: FDIC
- Trustee: A person or institution holding and administering property in trust.
(c) A trustee or employee of the retirement system shall have no personal economic interest in any entity listed in Subsection (a), but shall undertake such action and duties with respect to these entities as the board of trustees determines to be in the interest of the retirement system. This subsection does not prohibit:
(1) an interest in the assets as a member of the retirement system;
(2) the right to receive expense reimbursements at the same rate that the board member or employee would have received as a board member or employee; and
(3) such indemnification as is authorized by the board of trustees.
(d) The records of an agent, nominee, or other entity that are maintained by the retirement system are subject to audit by the state auditor.