Texas Finance Code 184.301 – Trust Deposits
(a) A state trust company may deposit trust funds with itself as an investment if:
(1) the deposit is authorized by the settlor or beneficiary;
(2) the state trust company maintains as security for the deposit a separate fund of securities, legal for trust investments, under control of a federal reserve bank or a clearing corporation, as defined by § 8.102, Business & Commerce Code, within or outside this state;
(3) the total market value of the security is at all times at least equal to the amount of the deposit; and
(4) the separate fund is designated as a separate fund.
(b) A state trust company may make periodic withdrawals from or additions to a securities fund required by Subsection (a) as long as the required value is maintained. Income from the securities in the fund belongs to the state trust company.
Terms Used In Texas Finance Code 184.301
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
(c) Security for a deposit under this section is not required for a deposit under Subsection (a) to the extent the deposit is insured by the Federal Deposit Insurance Corporation or its successor.