Tex. Educ. Code Section 45.208
Depository Contract; Bond

(a)

The bank or banks selected as the depository or depositories and the school district shall enter into a depository contract or contracts, bond or bonds, or other necessary instruments setting forth the duties and agreements pertaining to the depository, in a form and with the content prescribed by the State Board of Education. The parties shall attach to the contract and incorporate by reference the bid or proposal of the depository.

(b)

The depository bank shall attach to the contract and file with the school district a bond in an initial amount equal to the estimated highest daily balance, determined by the board of trustees of the district, of all deposits that the school district will have in the depository during the term of the contract, less any applicable Federal Deposit Insurance Corporation insurance. The bond must be payable to the school district and must be signed by the depository bank and by some surety company authorized to do business in this state. The depository bank shall increase the amount of the bond if the board of trustees determines it to be necessary to adequately protect the funds of the school district deposited with the depository bank.

(c)

The bond shall be conditioned on:

(1)

the faithful performance of all duties and obligations devolving by law on the depository;

(2)

the payment on presentation of all checks or drafts on order of the board of trustees of the school district, in accordance with its orders entered by the board of trustees according to law;

(3)

the payment on demand of any demand deposit in the depository;

(4)

the payment, after the expiration of the period of notice required, of any time deposit in the depository;

(5)

the faithful keeping of school funds by the depository and the accounting for the funds according to law; and

(6)

the faithful paying over to the successor depository all balances remaining in the accounts.

(d)

The bond and the surety on the bond must be approved by the board of trustees of the school district. A premium on the depository bond may not be paid out of school district funds.

(e)

Repealed by Acts 2019, 86th Leg., R.S., Ch. 439 (S.B. 1376), Sec. 4.01(a)(8), eff. June 4, 2019.

(f)

In lieu of the bond required under Subsection (b), the depository bank may deposit or pledge, with the school district or with a trustee designated by the school district, approved securities in an amount sufficient to adequately protect the funds of the school district deposited with depository bank. A depository bank may give a bond and deposit or pledge approved securities in an aggregate amount sufficient to adequately protect the funds of the school district deposited with the depository bank. The school district shall designate from time to time the amount of approved securities or the aggregate amount of the bond and approved securities to adequately protect the district. The district may not designate an amount less than the balance of school district funds on deposit with the depository bank from day to day, less any applicable Federal Deposit Insurance Corporation insurance. The depository bank may substitute approved securities on obtaining the approval of the school district. For purposes of this subsection, the approved securities are valued at their market value.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 322 (H.B. 2411), Sec. 4, eff. June 15, 2007.
Acts 2019, 86th Leg., R.S., Ch. 439 (S.B. 1376), Sec. 4.01(a)(8), eff. June 4, 2019.

Source: Section 45.208 — Depository Contract; Bond, https://statutes.­capitol.­texas.­gov/Docs/ED/htm/ED.­45.­htm#45.­208 (accessed Apr. 20, 2024).

45.001
Bonds and Bond Taxes 45.002
Maintenance Taxes 45.003
Bond and Tax Elections 45.004
Refunding Bonds 45.005
Examination of Bonds by Attorney General 45.006
Maintenance Tax Required for Judgment Ordering Ad Valorem Tax Refund 45.0011
Credit Agreements in Certain School Districts 45.0021
Restriction on Maintenance Tax Levy 45.0031
Limitation on Issuance of Tax-supported Bonds 45.031
Gymnasia, Stadia, and Other Recreational Facilities 45.0032
Components of Maintenance and Operations Tax 45.032
Revenue Bonds 45.033
Rentals, Rates, and Charges 45.034
Pledge of Revenues 45.035
Refunding Bonds 45.036
Examination of Bonds by Attorney General 45.051
Definitions 45.052
Guarantee 45.053
Limitation 45.054
Eligibility of School District Bonds 45.055
Application for Guarantee 45.056
Investigation 45.057
Guarantee Endorsement 45.058
Notice of Default 45.059
Payment of School District Bond on Default 45.060
Bonds Not Accelerated on Default 45.061
Reimbursement of Funds 45.062
Repeated Defaults 45.063
Rules 45.081
Definitions 45.082
Sale of Property 45.083
Other Laws Not Applicable 45.084
Contracts 45.085
Bond Requirements 45.086
Liberal Construction 45.087
Other Powers Unrestricted 45.101
Use of Bond Proceeds for Utility Connections 45.102
Investment of Bond Proceeds in Obligations of United States or Interest-bearing Secured Time Bank Deposits 45.103
Interest-bearing Time Warrants 45.104
Pledge of Delinquent Taxes as Security for Loan 45.105
Authorized Expenditures 45.106
Use of County Available Fund Apportionment for Area Schools Career and Technology Education 45.107
Investment of Gifts, Devises, and Bequests 45.108
Borrowing Money for Current Maintenance Expenses 45.109
Contracts for Athletic Facilities 45.110
Authorized but Unissued Bonds 45.111
Certificates of Indebtedness 45.112
Contracts for Investment of Debt Service Funds 45.113
Trust for County Permanent School Fund 45.151
Definitions 45.152
Creation of Authority 45.153
Board of Directors 45.154
Construction, Acquisition, and Operation of Stadium 45.155
Bonds 45.156
Contracts with School Districts 45.157
Examination of Bonds by Attorney General 45.158
Charges for Use of Stadium 45.159
Depository 45.160
Tax Exemption 45.161
Eminent Domain 45.162
Investment of Bond Proceeds 45.163
Acceptance of Gifts 45.201
Definitions 45.202
Selection of Depository 45.203
Depository Must Be a Bank 45.204
Conflict of Interest 45.205
Term of Contract 45.206
Bid or Request for Proposal Notices 45.207
Award of Contract 45.208
Depository Contract 45.209
Investment of District Funds 45.231
Employment of Assessor and Collector 45.232
Alternate Methods of Selection Under Former Law 45.251
Definitions 45.252
Intercept Credit Enhancement Program 45.253
Limitation on Intercept Credit Enhancement 45.254
Eligibility 45.255
Application for Credit Enhancement 45.256
Investigation 45.257
Credit Enhancement Endorsement 45.258
Notice of Failure or Inability to Pay 45.259
Payment from Intercepted Funds 45.260
Bonds Not Accelerated on Failure to Pay 45.261
Reimbursement of Foundation School Program 45.262
Repeated Failure to Pay 45.263
Rules 45.301
Definitions 45.302
Establishment of Program 45.303
Limitation on Participation 45.304
Allocation of Portion of Foundation School Program Funds for Credit Enhancement 45.305
Private Matching Funds Required 45.306
Repayment 45.307
Status of Program 45.308
Rules 45.351
Applicability 45.352
Election to Revoke County Equalization Tax 45.0531
Additional Limitation: Reservation of Percentage of Permanent School Fund Value 45.0532
Limitation on Guarantee of Charter District Bonds 45.0533
Communication with Nationally Recognized Investment Rating Firm 45.0541
Eligibility of Charter District Bonds 45.0571
Charter District Bond Guarantee Reserve Fund 45.0591
Payment of Charter District Bond on Default 45.1011
Use of Bond Proceeds for School Safety Compliance 45.1105
Use of Unspent General Obligation Bond Proceeds 45.2541
Intercept of Foundation School Program Appropriations as Credit Enhancement
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Accessed:
Apr. 20, 2024

§ 45.208’s source at texas​.gov