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<br />[Sections 2257.006 to 2257.020 reserved for expansion] <br /> <br />SUBCHAPTER B. DEPOSITORY; SECURITY FOR DEPOSIT OF PUBLIC FUNDS <br /> <br />2257.021 Collateral Required <br />A deposit of public funds shall be secured by eligible security to the extent and in the manner <br />required by this chapter. <br /> <br />2257.022 Amount of Collateral <br />(a) The total value of eligible security to secure a deposit of public funds must be in an <br />amount not less than the amount of the deposit of public funds: <br />(1) increased by the amount of any accrued interest; and <br />(2) reduced to the extent that the United States or an instrumentality of the United <br />States insures the deposit. <br />(b) The value of a surety bond is its face value. <br />(c) The value of an investment security is its market value. <br /> <br />2257.023 Collateral Policy <br />(a) In accordance with a written policy approved by the governing body of the public entity <br />a public entity shall determine if an investment security is eligible to secure deposits of <br />public funds. <br />(b) The written policy may include: <br />(1) the security ofthe institution that obtains or holds an investment security; <br />(2) the substitution or release of an investment security; and <br />(3) the method by which an investment security used to secure a deposit of public <br />funds is valued. <br /> <br />2257.024 Contract for Securing Deposit of Public Funds <br />(a) A public entity may contract with a bank domiciled in this state to secure a deposit of <br />public funds. <br />(b) The contract may contain a term or condition relating to an investment security used as <br />security for a deposit of public funds, including a term or condition relating to the: <br />(1) possession of the collateral; <br />(2) substitution or release of an investment security; <br />(3) ownership of the investment securities of the bank used to secure a deposit of <br />public funds, and <br />(4) method by which an investment security used to secure a deposit of public funds <br />is valued. <br /> <br />2257.025 Records of Depository <br />(a) A public entity's depository shall maintain a separate, accurate, and complete record <br />relating to a pledged investment security, a deposit of public funds, and a transaction related <br />to a pledged investment security. <br />(b) The Comptroller or the public entity may examine and verify at any reasonable time a <br />pledged investment security or a record a depository maintains under this section. <br /> <br />City of San Marcos Investment Policy <br /> <br />Page 35 <br />