Res 2007-166 - Laserfiche WebLink

Home Browse Search

1986 (26 U.S.C. Sections 401(k) and 457). Added by Acts 1993, 73rd Leg., ch. 268, S 1, eff. Sept. 1, 1993. S 2257.004. Conflict With Other Law This chapter prevails over any other law relating to security for a deposit of public funds to the extent of any conflicta Added by Acts 1993, 73rd Leg, ch. 268, S 1, eff. Sept. 1, 1993. S 2257.005. Contract Governs Legal Action A legal action brought by or against a public entity that arises out of or in connection with the duties of a depository, custodian, or permitted institution under this chapter must be brought and maintained as provided by the contract with the public entitya Added by Acts 1993, 73rd Leg, ch. 268, S 1, eff. Sept. 1, 1993. SUBCHAPTER B. DEPOSITORY; SECURITY FOR DEPOSIT OF PUBLIC FUNDS S 2257.021. Collateral Required A deposit of public funds shall be secured by eligible security to the extent and in the manner required by this chapter a Added by Acts 1993, 73rd Leg, ch. 268, S 1, eff. Sept. 1, 1993. S 2257.022. Amount of Collateral (a) Except as provided by Subsection (b), the total value of eligible security to secure a deposit of public funds must be in an amount not less than the amount of the deposit of public funds: (1) increased by the amount of any accrued interest; and (2) reduced to the extent that the United States or an instrumentality of the United States insures the deposit. (b) The total value of eligible security described by Section 45.201 (4 )(D), Education Code, to secure a deposit of public funds of a school district must be in an amount not less than 110 percent of the amount of the deposit as determined under Subsection (a)a The total market value of the eligible security must be reported at least once each month to the school districta (c )The value of a surety bond is its face valuea (d) The value of an investment security is its market valuea Added by Acts 1993, 73rd Leg, ch. 268, S 1, eff. Sept. 1,1993, Acts of 78th Leg eff. Sept. 1,2003. S 2257.023. Collateral Policy (a) In accordance with a written policy approved by the governing body of the public entity, a public entity shall determine if an investment security is eligible to secure deposits of public funds. (b) The written policy may include: (1) the security of the institution that obtains or holds an investment security; (2) the substitution or release of an investment security; and (3) the method by which an investment security used to secure a deposit of public funds is valued. City of San Marcos Investment Policy Page 34