Texas Government Code 2257.041 – Deposit of Securities With Custodian
Current as of: 2024 | Check for updates
|
Other versions
(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.
Terms Used In Texas Government Code 2257.041
- Comptroller: means the state comptroller of public accounts. See Texas Government Code 312.011
- Fiduciary: A trustee, executor, or administrator.
- in writing: includes any representation of words, letters, or figures, whether by writing, printing, or other means. See Texas Government Code 312.011
- National Bank: A bank that is subject to the supervision of the Comptroller of the Currency. The Office of the Comptroller of the Currency is a bureau of the U.S. Treasury Department. A national bank can be recognized because it must have "national" or "national association" in its name. Source: OCC
(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 § 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.