(a) The board shall name one or more banks to serve as depository for the district’s money.
(b) District money, other than money transmitted to a bank for payment of bonds issued by the district, shall be deposited as received with the depository bank and shall remain on deposit.

Terms Used In Texas Special District Local Laws Code 21.354

  • 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

(c) Before the district deposits money in a bank in an amount that exceeds the maximum amount secured by the Federal Deposit Insurance Corporation, the bank must execute a bond or provide other security in an amount sufficient to secure from loss the amount of the district’s deposits that exceed the amount secured by the Federal Deposit Insurance Corporation.
(d) This section does not limit the board’s power to invest the district’s money as provided by Subchapter A, Chapter 2256, Government Code.

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