Texas Special District Local Laws Code 1086.159 – Depository
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(a) The board shall select at least one bank to serve as a depository for district money.
(b) District money, other than money invested as provided by Section 1086.160(b) and money transmitted to a bank of payment as a trustee for bonds or obligations issued or assumed by the district, shall be deposited as received with the depository bank and shall remain on deposit. This subsection does not limit the power of the board to:
(1) place a portion of district money on time deposit; or
(2) purchase certificates of deposit.
Terms Used In Texas Special District Local Laws Code 1086.159
- 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.
- Federal Deposit Insurance Corporation: A government corporation that insures the deposits of all national and state banks that are members of the Federal Reserve System. Source: OCC
- Trustee: A person or institution holding and administering property in trust.
(c) The district may not deposit money with a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation unless the bank first executes a bond or other security in an amount sufficient to secure from loss the district money that exceeds the amount secured by the Federal Deposit Insurance Corporation.