Texas Health and Safety Code 772.530 – Bonds as Investments and Security for Deposits
(a) District bonds are legal and authorized investments for:
(1) a bank;
(2) a savings bank;
(3) a credit union;
(4) a trust company;
(5) a savings and loan association;
(6) an insurance company;
(7) a fiduciary;
(8) a trustee;
(9) a guardian; and
(10) a sinking fund of a municipality, county, school district, special district, and other political subdivision of this state and other public funds of this state and state agencies, including the permanent school fund.
(b) District bonds may secure deposits of public funds of the state or a municipality, county, school district, or other political subdivision of this state. The bonds are lawful and sufficient security for deposits to the extent of the bonds’ value if accompanied by all unmatured coupons.
Terms Used In Texas Health and Safety Code 772.530
- Fiduciary: A trustee, executor, or administrator.
- Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
- Trustee: A person or institution holding and administering property in trust.
(c) District bonds are authorized investments under Chapter 2256, Government Code.