(a) The pool manager shall maintain the assets of the investment pool in one or more accounts, in the name of or on behalf of the pool, under a custody agreement with a qualified bank.
(b) The custody agreement must:
(1) state and recognize the claims and rights of each participant;
(2) acknowledge that the investment pool’s underlying assets are held solely for the benefit of each participant in proportion to the aggregate amount of the participant’s investments in the pool; and
(3) contain an agreement that the pool’s underlying assets may not be commingled with the general assets of the custodian qualified bank or any other person.

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Terms Used In Texas Insurance Code 424.110

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005