Res 2007-166 - Laserfiche WebLink

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(a) A security interest that arises out of a depository's pledge of a security to secure a deposit of public funds by a public entity or an institution of higher education, as defined by Section 61.003, Education Code, is created, attaches, and is perfected for all purposes under state law from the time that the custodian identifies the pledge of the security on the custodian's books and records and issues the trust receipta (b) A security interest in a pledged security remains perfected in the hands of a subsequent custodian or permitted institutiona Added by Acts 1993, 73rd Leg, ch. 268, S 1, eff. Sept. 1, 1993. SUBCHAPTERD. AUDITS AND EXAMINATIONS; PENALTIES S 2257.061. Audits and Examinations As part of an audit or regulatory examination of a public entity's depository or custodian, the auditor or examiner shall: (1) examine and verify pledged investment securities and records maintained under Section 2257 a025 or 2257.046; and (2) report any significant or material noncompliance with this chapter to the comptroller. Added by Acts 1993, 73rd Leg, ch. 268, S 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 891, S 3.19, eff. Sept. 1, 1997. S 2257.062. Penalties (a) The comptroller may revoke a depository's designation as a state depository for one year if, after notice and a hearing, the comptroller makes a written finding that the depository, while acting as either a depository or a custodian: (1) did not maintain reasonable compliance with this chapter; and (2) failed to remedy a violation of this chapter within a reasonable time after receiving written notice of the violationa (b) The comptroller may permanently revoke a depository's designation as a state depository if the comptroller makes a written finding that the depository: (1) has not maintained reasonable compliance with this chapter; and (2) has acted in bad faith by not remedying a violation of this chapter a Added by Acts 1993, 73rd Leg, ch. 268, S 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., ch. 891, S 3.19, eff. Sept. 1, 1997. S 2257.063. Mitigating Circumstances ( a) The comptroller shall consider the total circumstances relating to the performance of a depository or custodian when the comptroller makes a finding required by Section 2257.062, including the extent to which the noncompliance is minor, isolated, temporary, or nonrecurrenta (b) The comptroller may not find that a depository or custodian did not maintain reasonable compliance with this chapter if the noncompliance results from the public entity's failure to comply with Section 2257.026. (c) This section does not relieve a depository or custodian of the obligation to secure a deposit of public funds with eligible security in the amount and manner required by this chapter within a City of San Marcos Investment Policy Page 38