Laserfiche WebLink
<br />a) A security interest that arises out of a depository's pledge of a security to secure a deposit of <br />,ublic funds by a public entity or an institution of higher education, as defined by Section 61.003, <br />~ducation Code, is created, attaches, and is perfected for all purposes under state law from the time <br />that the custodian identifies the pledge of the security on the custodian's books and records and issues <br />the tnlSt receipt. <br />(b) A security interest in a pledged security remains perfected in the hands of a subsequent custodian <br />or pennitted institution. <br /> <br />Added by Acts 1993, 73rd Leg, ch. 268, ~ 1, eff. Sept. 1, 1993. <br /> <br />SUBCHAPTER D. AUDITS AND EXAMINATIONS; PENALTIES <br /> <br />~ 2257.061. Audits and Examinations As part of an audit or regulatory examination of a public <br />entity's depository or custodian, the auditor or examiner shall: <br />(1) examine and verify pledged investment securities and records maintained under Section 2257.025 <br />or 2257.046; and <br />(2) report any significant or material noncompliance with this chapter to the comptroller. <br /> <br />Added by Acts 1993, 73rd Leg, ch. 268, ~ 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., <br />ch. 891, ~ 3.19, eff. Sept. 1, 1997. <br /> <br />~ 2257.062. Penalties <br />(a) The comptroller may revoke a depository's designation as a state depository for one year if, after <br />notice and a hearing, the comptroller makes a written finding that the depository, while acting as <br />either a depository or a custodian: <br />(1) did not maintain reasonable compliance with this chapter; and <br />(2) failed to remedy a violation of this chapter within a reasonable time after receiving <br />written notice of the violation. <br />(b) The comptroller may pennanently revoke a depository's designation as a state depository if the <br />comptroller makes a written finding that the depository: <br />(1) bas not maintained reasonable compliance with this chapter; and <br />(2) has acted in bad faith by not remedying a violation of this chapter. <br /> <br />Added by Acts 1993, 73rd Leg, ch. 268, ~ 1, eff. Sept. 1, 1993. Amended by Acts 1997, 75th Leg., <br />ch. 891, ~ 3.19, efI. Sept. 1, 1997. <br /> <br />~ 2257.063. Mitigating Circumstances <br />(a) The comptroller shall consider the total circumstances relating to the performance ofa depository <br />or custodian when the comptroller makes a finding required by Section 2257.062, including the <br />extent to which the noncompliance is minor, isolated, temporary, or nonrecurrent. <br />(b) The comptroller may not find that a depository or custodian did not maintain reasonable <br />compliance with this chapter if the noncompliance results from the public entity's failure to comply <br />with Section 2257.026. <br />( c) This section does not relieve a depository or custodian of the obligation to secure a deposit of <br />public funds with eligible security in the amount and manner required by this chapter within a <br /> <br />City of San Marcos Investment Policy <br /> <br />Page 41 <br />