Texas Finance Code 34.304 – Securing Deposits
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(a) A state bank may not create a lien on its assets or secure the repayment of a deposit except as authorized or required by this section, rules adopted under this subtitle, or other law.
(b) A state bank may pledge its assets to secure a deposit of:
(1) any state or an agency, political subdivision, or instrumentality of any state;
(2) the United States or an agency or instrumentality of the United States;
(3) any federally recognized Indian tribe; or
(4) another entity to the same extent and subject to the same limitations as may be authorized by the law of this state or of the United States for any other depository institution doing business in this state.
Terms Used In Texas Finance Code 34.304
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Contract: A legal written agreement that becomes binding when signed.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
(c) This section does not prohibit the pledge of assets to secure the repayment of money borrowed or the purchase of excess deposit insurance from a private insurance company.
(d) An act, deed, conveyance, pledge, or contract in violation of this section is void.