Res 2006-193 - Laserfiche WebLink

Home Browse Search

I I I (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 ofthe security on the custodian's books and records and issues the trust receipt. (b) A security interest in a pledged security remains perfected in the hands ofa subsequent custodian or permitted institution. Added by Acts 1993, 73rd Leg, ch. 268, I} 1, eff. Sept 1,1993. SUBCHAPTER 0, AUDITS AND EXAMINA nONS; PENALTIES S 2257061. Audits and Examinations As part of an audit or regulatory examination of a pubhc entity's depository or custodJan, the auditor or examiner shall: (1) examine and verify pledged mvestment securities and records maintained under Section 2257,025 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, J 993. Amended by Acts 1997, 75th Leg" ch. 891, S 3.19, eff. Sept. I, ]997. 92257.062- Penalties fa) The comptroller may revoke a depository's designation as Ii slate depository for one year if, after notice and a hearing, the complrancr makes a '-"Tinen finding that the depository, while acting as either a depository or a custodian: (I) did not maintain reasonable compliance with thiS chapter: and (2) failed to remedy a violation of this chapter withm a reasonable time after receivmg written notice of the violation. (b) The comptroller may permanently revoke a depository's designation as a state depository jfthe comptroller makes a written flnding thatlhe depository: , (I) has not maintained reasonable compliance with this chapter; and (2) has acted in bad faith by not remedying a violatIOn of this chapter. Added by Acts 1993, 73rd Leg, ch. 268,9 1, efr. Sept. I, 1993, Amended by Acts 1997, 75th Leg" ch. 891, S 3.1 9, eff, Sept, I, 1997. 92257.063, Mitigating Circumstances (a) The comptroller shaH conSIder the total circumstances relating to the perfonnance of a depository or custodian when the comptroller makes a finding required by Section 2257.062, including the extent to which the noncompliance JS minor, isolated, temporary, or nonrecurrent. (b) The comptroller may not find that a depository or custodian did not maintain reasonable compliancc 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 cuslodian of the obligation to secure a deposit of public funds with eligible security in the amount aod manner required by this chapter within a City of San Marcos Investment Policy Page 38