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(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.Tex. Gov't. Code § 2257.041
Amended By Acts 2009, 81st Leg., R.S., Ch. 486, Sec. 3, eff. 9/1/2009.Amended By Acts 1999, 76th Leg., ch. 344, Sec. 5.007, eff. 9/1/1999.Amended By Acts 1997, 75th Leg., ch. 891, Sec. 3.17, eff. 9/1/1997Amended by Acts 1995, 74th Leg., ch. 1010, Sec. 1, eff. 6/17/1995Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. 9/1/1993.