Texas Special District Local Laws Code
The board shall designate one or more banks to serve as depository for the authority’s money.
All of the authority’s money shall be deposited in the depository bank or banks, except that:
money pledged to pay bonds may be deposited with the trustee bank or banks named in the trust indenture; and
money for payment of the principal of and interest on bonds shall be remitted to the bank of payment.
To the extent that money in the depository banks and the trustee bank are not insured by the Federal Deposit Insurance Corporation, they must be secured in the manner provided by law for the security of county funds.
Before designating a depository bank or banks, the board shall issue a notice that:
states the time and place of the board’s meeting for that purpose; and
invites the banks to submit applications to be designated depositories.
The notice must be published one time in a newspaper published in the city of Athens at least 10 days before the date set for receiving applications.
The board shall prescribe the terms of service for depositories.
At the time mentioned in the notice, the board shall:
consider the applications and the management and condition of the banks filing applications; and
designate as depository the bank or banks that:
offer the most favorable terms for handling the authority’s money; and
the board finds have proper management and are in condition to handle the authority’s money.
If the board does not receive any applications by the time stated in the notice, or if the board rejects all applications, the board shall designate a bank or banks on terms it finds advantageous to the authority.Acts 2003, 78th Leg., ch. 1277, Sec. 1, eff. April 1, 2005.