Sec. 116.0565. CERTIFICATE OF DEPOSIT. (a) A certificate of deposit qualifies as security under this subchapter if the certificate is:
(1) held in the custody of a Federal Reserve Bank for safekeeping and made the subject of a valid pledge agreement designating the county as the beneficiary of the pledge agreement;
(2) insured in full by the Federal Savings and Loan Insurance Corporation or the Federal Deposit Insurance Corporation;
(3) described in detail by a safekeeping receipt issued to the county by the Federal Reserve Bank having custody of the certificates; and
(4) issued with the county as registered owner.
(b) A person to whom presentment of a certificate of deposit pledged to secure county funds is made may not pay or otherwise accept the certificate unless the certificate or the safekeeping receipt required by this section has been endorsed by the county and the depository.
Added by Acts 1989, 71st Leg., ch. 1, Sec. 15(b), eff. Aug. 28, 1989.
Structure Texas Statutes
Chapter 116 - Depositories for County Public Funds
Subchapter C. Security for Funds Held by Depository
Section 116.051. Qualification as Depository or Subdepository
Section 116.052. Personal Bond
Section 116.054. Bonds, Notes, and Other Securities
Section 116.055. First Mortgages on Improved Real Property
Section 116.056. Real Property
Section 116.0565. Certificate of Deposit
Section 116.057. Condition of Personal Bond or Contract for Securities
Section 116.058. Amount of Security Required
Section 116.059. Valuation of Real Property Provided as Security
Section 116.060. Security Not Required for Federally Insured Deposits