Texas Government Code 1505.067 – Deposit of Bond Proceeds
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Terms Used In Texas Government Code 1505.067
- Federal Reserve System: The central bank of the United States. The Fed, as it is commonly called, regulates the U.S. monetary and financial system. The Federal Reserve System is composed of a central governmental agency in Washington, D.C. (the Board of Governors) and twelve regional Federal Reserve Banks in major cities throughout the United States. Source: OCC
- United States: includes a department, bureau, or other agency of the United States of America. See Texas Government Code 311.005
The governing body of a municipality that issues bonds under this subchapter shall:
(1) if practicable, require that:
(A) the bond proceeds be deposited in an account in a bank that is a member of the Federal Reserve System; and
(B) each deposit be secured by direct obligations of the United States that have an aggregate market value at least equal to the amount of proceeds then on deposit; or
(2) if it is not practicable for the bond proceeds to be deposited as provided by Subdivision (1), deposit the proceeds in a bank or other depository that will secure the deposit to the governing body’s satisfaction.