Texas Government Code Title 10, Chapter 2257 - Collateral For Public Funds
SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 2257.001 - Short Title
This chapter may be cited as the Public Funds Collateral Act. Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.
- Texas Section 2257.002 - Definitions
In this chapter: (1) "Bank holding company" has the meaning assigned by Section 31.002(a), Finance Code. (2) "Control" has the meaning assigned by Section 31.002(a),...
- Texas Section 2257.0025 - High-risk Mortgage Security
(a) For purposes of this chapter, a fixed-rate collateralized mortgage obligation is a high-risk mortgage security if the security: (1) has an average life sensitivity...
- Texas Section 2257.003 - Chapter Not Applicable To Deferred Compensation Plans
This chapter does not apply to funds that a public entity maintains or administers under a deferred compensation plan, the federal income tax treatment of...
- Texas Section 2257.004 - Conflict With Other Law
This chapter prevails over any other law relating to security for a deposit of public funds to the extent of any conflict. Added by Acts...
SUBCHAPTER B DEPOSITORY; SECURITY FOR DEPOSIT OF PUBLIC FUNDS
- Texas Section 2257.005 - Contract Governs Legal Action
A legal action brought by or against a public entity that arises out of or in connection with the duties of a depository, custodian, or...
- Texas Section 2257.021 - Collateral Required
A deposit of public funds shall be secured by eligible security to the extent and in the manner required by this chapter. Added by Acts...
- Texas Section 2257.022 - Amount Of Collateral
(a) Except as provided by Subsection (b), the total value of eligible security to secure a deposit of public funds must be in an amount...
- Texas Section 2257.023 - Collateral Policy
(a) In accordance with a written policy approved by the governing body of the public entity, a public entity shall determine if an investment security...
- Texas Section 2257.024 - Contract For Securing Deposit Of Public Funds
(a) A public entity may contract with a bank that has its main office or a branch office in this state to secure a deposit...
- Texas Section 2257.025 - Records Of Depository
(a) A public entity's depository shall maintain a separate, accurate, and complete record relating to a pledged investment security, a deposit of public funds, and...
SUBCHAPTER C CUSTODIAN; PERMITTED INSTITUTION
- Texas Section 2257.026 - Change In Amount Or Activity Of Deposits Of Public Funds
A public entity shall inform the depository for the public entity's deposit of public funds of a significant change in the amount or activity of...
- Texas 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...
- Texas Section 2257.042 - Deposit Of Securities With Permitted Institution
(a) A custodian may deposit with a permitted institution an investment security the custodian holds under Section 2257.041. (b) If a deposit is made under...
- Texas Section 2257.043 - Depository As Custodian Or Permitted Institution
(a) A public entity other than a state agency may prohibit a depository or an entity of which the depository is a branch from being...
- Texas Section 2257.044 - Custodian As Bailee
(a) A custodian under this chapter or a custodian of a security pledged to an institution of higher education, as defined by Section 61.003, Education...
- Texas Section 2257.045 - Receipt Of Security By Custodian
(a) On receipt of an investment security, a custodian shall immediately identify on its books and records, by book entry or another method, the pledge...
- Texas Section 2257.046 - Books And Records Of Custodian; Inspection
(a) A public entity's custodian shall maintain a separate, accurate, and complete record relating to each pledged investment security and each transaction relating to a...
- Texas Section 2257.047 - Books And Records Of Permitted Institution
(a) A permitted institution may apply book entry procedures when an investment security held by a custodian is deposited under Section 2257.042. (b) A permitted...
SUBCHAPTER D AUDITS AND EXAMINATIONS; PENALTIES
- Texas Section 2257.048 - Attachment And Perfection Of Security Interest
(a) A security interest that arises out of a depository's pledge of a security to secure a deposit of public funds by a public entity...
- Texas Section 2257.061 - Audits And Examinations
As part of an audit or regulatory examination of a public entity's depository or custodian, the auditor or examiner shall: (1) examine and verify pledged...
- Texas Section 2257.062 - Penalties
(a) The comptroller may revoke a depository's designation as a state depository for one year if, after notice and a hearing, the comptroller makes a...
- Texas Section 2257.063 - Mitigating Circumstances
(a) The comptroller shall consider the total circumstances relating to the performance of a depository or custodian when the comptroller makes a finding required by...
SUBCHAPTER E EXEMPT INSTITUTIONS
- Texas Section 2257.064 - Reinstatement
The comptroller may reinstate a depository's designation as a state depository if: (1) the comptroller determines that the depository has remedied all violations of this...
- Texas Section 2257.081 - Definition
In this subchapter, "exempt institution" means: (1) a public retirement system, as defined by Section 802.001; or (2) the permanent school fund, as described by...
- Texas Section 2257.082 - Funds Of Exempt Institution
An exempt institution is not required to have its funds fully insured or collateralized at all times if: (1) the funds are held by: (A)...
SUBCHAPTER F POOLED COLLATERAL TO SECURE
- Texas Section 2257.083 - Investment; Selection Of Depository
This chapter does not: (1) prohibit an exempt institution from prudently investing in a certificate of deposit; or (2) restrict the selection of a depository...
- Texas Section 2257.101 - Definition
In this subchapter, "participating institution" means a financial institution that holds one or more deposits of public funds and that participates in the pooled collateral...
- Texas 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...
- Texas Section 2257.103 - Participation In Pooled Collateral Program
A financial institution may participate in the pooled collateral program only if: (1) the institution has entered into a binding collateral security agreement with a...
- Texas Section 2257.104 - Collateral Required; Custodian Trustee
(a) Each participating institution shall secure its deposits of public funds with eligible securities the total value of which equals at least 102 percent of...
- Texas Section 2257.105 - Monitoring Collateral
(a) Each participating institution shall file the following reports with the comptroller electronically and as prescribed by rules of the comptroller: (1) a daily report...
- Texas Section 2257.106 - Annual Assessment
(a) Once each state fiscal year, the comptroller shall impose against each participating institution an assessment in an amount sufficient to pay the costs of...
- Texas Section 2257.107 - Penalty For Reporting Violation
The comptroller may impose an administrative penalty against a participating institution that does not timely file a report required by Section 2257.105. Added by Acts...
- Texas Section 2257.108 - Notice Of Collateral Violation; Administrative Penalty
(a) The comptroller may issue a notice to a participating institution that the institution appears to be in violation of collateral requirements under Section 2257.104...
- Texas Section 2257.109 - Penalty For Failure To Pay Assessment
The comptroller may impose an administrative penalty against a participating institution that does not pay an assessment against it in the time provided by Section...
- Texas Section 2257.110 - Penalty Amount; Penalties Not Exclusive
(a) The comptroller by rule shall adopt a formula for determining the amount of a penalty under this subchapter. For each violation and for each...
- Texas Section 2257.111 - Penalty Proceeding Contested Case
A proceeding to impose a penalty under Section 2257.107, 2257.108, or 2257.109 is a contested case under Chapter 2001. Added by Acts 2009, 81st Leg.,...
- Texas Section 2257.112 - Suit To Collect Penalty
The attorney general may sue to collect a penalty imposed under Section 2257.107, 2257.108, or 2257.109. Added by Acts 2009, 81st Leg., R.S., Ch. 486...
- Texas Section 2257.113 - Enforcement Stayed Pending Review
Enforcement of a penalty imposed under Section 2257.107, 2257.108, or 2257.109 may be stayed during the time the order is under judicial review if the...
- Texas Section 2257.114 - Use Of Collected Penalties
Money collected as penalties under this subchapter may be appropriated only for the purposes of administering this subchapter. Added by Acts 2009, 81st Leg., R.S.,...
Last modified: September 28, 2016