Section 105.051 - Maintenance of Security(a) A depository services contract shall contain terms and conditions relating to the possession, substitution, or release of security, including: (1) requiring the depository to execute a new bond or pledge additional securities for the deposit of municipal funds;(2) substituting one security for another;(3) releasing securities pledged by a depository in excess of the amount required by this chapter;(4) the time period in which such addition, substitution, or release of security by a depository may occur; and(5) other matters relating to the possession, substitution, or release of security the municipality considers necessary for its protection.(b) If a depository fails for any reason to comply with the requirements governing the possession, substitution, or release of security, the governing body may select a new depository in the manner provided in this chapter.Tex. Loc. Gov't. Code § 105.051
Amended by Acts 1993, 73rd Leg., ch. 234, Sec. 1, eff. 9/1/1993. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. 9/1/1987.