Tex.
Gov't Code Section 2257.102
Pooled Collateral Program
(a)
As an alternative to collateralization under Subchapter B, the comptroller by rule shall establish a program for centralized pooled collateralization of deposits of public funds and for monitoring collateral maintained by participating institutions. The rules must provide that deposits of public funds of a county are not eligible for collateralization under the program. The comptroller shall provide for a separate collateral pool for any single participating institution’s deposits of public funds.(b)
Under the pooled collateral program, the collateral of a participating institution pledged for a public deposit may not be combined with, cross-collateralized with, aggregated with, or pledged to another participating institution’s collateral pools for pledging purposes.(c)
A participating institution may pledge its pooled securities to more than one participating depositor under contract with that participating institution.(d)
The pooled collateral program must provide for:(1)
participation in the program by a participating institution and each affected public entity to be voluntary;(2)
uniform procedures for processing all collateral transactions that are subject to an approved security agreement described by Section 2257.103 (Participation in Pooled Collateral Program); and(3)
the pledging of a participating institution’s collateral securities using a single custodial account instead of an account for each depositor of public funds.
Source:
Section 2257.102 — Pooled Collateral Program, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.2257.htm#2257.102 (accessed Apr. 20, 2024).
