Sec. 131.903. CONFLICT OF INTEREST. (a) A bank is not disqualified from serving as a depository for funds of a political subdivision if:
(1) an officer or employee of the political subdivision who does not have the duty to select the political subdivision's depository is an officer, director, or shareholder of the bank; or
(2) one or more officers or employees of the political subdivision who have the duty to select the political subdivision's depository are officers or directors of the bank or own or have a beneficial interest, individually or collectively, in 10 percent or less of the outstanding capital stock of the bank, if:
(A) a majority of the members of the board, commission, or other body of the political subdivision vote to select the bank as a depository; and
(B) the interested officer or employee does not vote or take part in the proceedings.
(b) This section may not be construed as changing or superseding a conflicting provision in the charter of a home-rule municipality.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 36, eff. Sept. 1, 1993.
Section: Previous 131.001 131.002 131.003 131.004 131.005 131.901 131.902Last modified: September 28, 2016