Texas Local Government Code Title 4, Chapter 116 - Depositories For County Public Funds

SUBCHAPTER A GENERAL PROVISIONS

• Texas Section 116.001 - Definitions
  In this chapter: (1) "Bank" means a: (A) bank organized under the laws of this state, another state, or federal law that has its main...

SUBCHAPTER B ESTABLISHMENT OF DEPOSITORY

• Texas Section 116.002 - Money Affected
  (a) This chapter applies to money collected or held by a district, county, or precinct officer in a county and by the officers of a...
• Texas Section 116.021 - Depository And Subdepository Contracts
  (a) The commissioners court of a county shall select by the process provided by this subchapter or by Subchapter C, Chapter 262, one or more...
• Texas Section 116.022 - Notice
  (a) Once each week for at least 20 days before the date to submit an application under Section 116.023(a), the county judge shall place over...
• Texas Section 116.023 - Applications
  (a) A bank in the county that wants to be a county depository must deliver its application to the county judge or a designated representative...
• Texas Section 116.024 - Selection Of Depositories And Subdepositories
  (a) At the meeting at which banks are to be selected as county depositories, the commissioners court shall: (1) enter in the minutes of the...
• Texas Section 116.025 - Designation Of Depository Or Subdepository
  When security is provided in accordance with Subchapter C and is approved by the commissioners court, the commissioners court shall, by an order entered in...
• Texas Section 116.026 - Applicants Outside County
  If no bank located in the county applies to be designated as the county depository, the commissioners court may advertise, in the same manner provided...

SUBCHAPTER C SECURITY FOR FUNDS HELD BY DEPOSITORY

• Texas Section 116.027 - Selection Of Nonapplicant Depository
  (a) If no application to be a county depository is submitted, or if all of the applications are declined, the commissioners court shall deposit the...
• Texas Section 116.051 - Qualification As Depository Or Subdepository
  Within 15 days after the date a bank is selected as a county depository or subdepository, the bank must qualify as the depository or subdepository...
• Texas Section 116.052 - Personal Bond
  (a) One or more personal bonds executed and filed with the commissioners court, payable to the county judge and the judge's successors in office, qualify...
• Texas Section 116.053 - Surety Bond
  (a) One or more bonds issued and executed by one or more solvent surety companies authorized to do business in this state, payable to the...
• Texas Section 116.054 - Bonds, Notes, And Other Securities
  (a) A county depository may pledge with the commissioners court as security under this subchapter: (1) a bond, note, security of indebtedness, or other evidence...
• Texas Section 116.055 - First Mortgages On Improved Real Property
  (a) If approved by the commissioners court, closed first mortgages on improved and unencumbered real property located in this state that are assigned to the...
• Texas Section 116.056 - Real Property
  (a) If approved by the commissioners court, improved and unencumbered real property, pledged directly by deed of trust to a trustee selected by the commissioners...
• Texas Section 116.0565 - Certificate Of Deposit
  (a) A certificate of deposit qualifies as security under this subchapter if the certificate is: (1) held in the custody of a Federal Reserve Bank...
• Texas Section 116.057 - Condition Of Personal Bond Or Contract For Securities
  (a) A personal bond provided or a contract for the pledge of securities under this subchapter must be conditioned that the depository will: (1) faithfully...
• Texas Section 116.058 - Amount Of Security Required
  (a) Personal or surety bonds that secure county deposits must be in an amount equal to the estimated highest daily balance of the county, as...
• Texas Section 116.059 - Valuation Of Real Property Provided As Security
  The commissioners court shall investigate all real property security and determine the value at which the property will be accepted. The commissioners court may not...

SUBCHAPTER D MAINTENANCE AND MODIFICATION OF SECURITY

• Texas Section 116.060 - Security Not Required For Federally Insured Deposits
  A depository is not required to provide security for the deposit of county funds to the extent the deposits are insured under 12 U.S.C.A. Sections...
• Texas Section 116.081 - New Bond
  (a) The commissioners court may by written order require a depository to execute a new bond whenever the commissioners court considers it advisable or considers...
• Texas Section 116.082 - Substitution Of Securities
  (a) After reasonable notice to the commissioners court, a depository is entitled to substitute one type of security for another or replace particular securities with...
• Texas Section 116.083 - Release Of Excess Security
  If the securities pledged by a depository to secure county funds exceed the amount required under this chapter, the commissioners court shall permit the release...
• Texas Section 116.084 - Inadequate Security
  If for any reason the county funds on deposit with the county depository exceed the amount of security pledged, the depository shall immediately pledge additional...
• Texas Section 116.085 - Solvency Of Personal Surety
  (a) At least twice each year while a personal bond securing the county's deposits is in effect, the commissioners court shall investigate the solvency of...
• Texas Section 116.086 - Solvency Of Surety Company And Adequacy Of Securities
  Whenever the commissioners court considers it necessary for the protection of the county, the commissioners court may investigate the solvency of a surety company that...
• Texas Section 116.087 - Additional Bond
  (a) If after a county establishes a depository the county or a subdivision of the county receives funds from the sale of bonds or otherwise,...
• Texas Section 116.088 - Release Of Surety Company
  (a) A surety company may be relieved of its obligations under a surety bond executed on behalf of a county depository after the 30th day...

SUBCHAPTER E DEPOSITORY ACCOUNTS

• Texas Section 116.089 - Surrender Of Interest On Securities
  On the request of a county depository, the commissioners court shall surrender, when due, interest coupons or other evidence of interest on securities deposited by...
• Texas Section 116.111 - Character And Amount Of Deposits
  The commissioners court may determine and designate the character and amount of county funds that will be demand deposits and that will be time deposits....
• Texas Section 116.112 - Investment Of Funds
  (a) The commissioners court may direct the county treasurer to withdraw any county funds deposited in a county depository that are not immediately required to...
• Texas Section 116.113 - Deposit Of Funds
  (a) Immediately after the commissioners court designates a county depository, the county treasurer shall transfer to the depository all of the county's funds and the...
• Texas Section 116.114 - Collections By Depository
  A county depository shall collect all checks, drafts, and demands for money deposited with it by the county. Acts 1987, 70th Leg., ch. 149, Sec....
• Texas Section 116.115 - Clearinghouse For Multiple Depositories
  If the funds of a county are deposited with more than one depository, the commissioners court shall by order name one of the depositories to...
• Texas Section 116.116 - Obligations Payable At County Depository
  (a) A county depository shall pay a check or order for payment drawn by the county treasurer against funds deposited with the depository on presentation...
• Texas Section 116.117 - Statements Of Account
  A depository shall make a detailed monthly statement to the commissioners court at each regular term of the court. The statement must show the daily...
• Texas Section 116.118 - Debts Payable Other Than At County Treasury
  The commissioners court may instruct the county treasurer to deposit money adequate to pay a bond, coupon, or other indebtedness of the county at a...
• Texas Section 116.119 - Requirements For Auditing And Countersigning Unaffected
  This chapter does not affect the application of a law or regulation providing for auditing and countersigning. Acts 1987, 70th Leg., ch. 149, Sec. 1,...

SUBCHAPTER F LIABILITIES

• Texas Section 116.120 - Collection Of Certain Overdue County Orders For Payment Or Checks
  (a) This section applies only to an order for payment or check issued by a county treasurer in settlement of a claim against a county...
• Texas Section 116.151 - Liabilities Of Sureties On Separate Bonds
  If a county depository provides separate bonds to secure county funds, each surety under a bond is liable only for that part of a loss...
• Texas Section 116.152 - Subrogation Of Sureties
  If a personal surety or a surety company pays for a loss to a county under a depository bond, the surety is subrogated to the...
• Texas Section 116.153 - Pro Rata Recovery By State And County
  If a county depository becomes insolvent and it becomes necessary to resort to the depository's bond or bonds to recover funds of the county and...
• Texas Section 116.154 - Liability Of Depository Pending Collection Of Deposits
  A county depository that uses due diligence to collect a check, draft, or demand for money deposited by the county with the depository is not...
• Texas Section 116.155 - Failure Of Depository To Pay Check Or Order For Payment
  A depository that does not pay a check or order for payment as required by Section 116.116(a) is liable for and shall pay to the...

Last modified: September 28, 2016