Tex.
Gov't Code Section 2257.041
Deposit of Securities with Custodian
(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.(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 Section 404.031 (Collateral Requirements)(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.
Source:
Section 2257.041 — Deposit of Securities with Custodian, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2257.htm#2257.041 (accessed Jun. 5, 2024).
