2023 Texas Statutes › Government Code › Title 10 - General Government › Subtitle F - State and Local Contracts and Fund Management › Chapter 2257 - Collateral for Public Funds › Subchapter A. General Provisions › Section 2257.002. Definitions

Sec. 2257.002.  DEFINITIONS.  In this chapter:
(1)  "Bank holding company" has the meaning assigned by Section 31.002(a), Finance Code.
(2)  "Control" has the meaning assigned by Section 31.002(a), Finance Code.
(3)  "Deposit of public funds" means public funds of a public entity that:
(A)  the comptroller does not manage under Chapter 404;  and
(B)  are held as a demand or time deposit by a depository institution expressly authorized by law to accept a public entity's demand or time deposit.
(4)  "Eligible security" means:
(A)  a surety bond;
(B)  an investment security;
(C)  an ownership or beneficial interest in an investment security, other than an option contract to purchase or sell an investment security;
(D)  a fixed-rate collateralized mortgage obligation that has an expected weighted average life of 10 years or less and does not constitute a high-risk mortgage security;
(E)  a floating-rate collateralized mortgage obligation that does not constitute a high-risk mortgage security; or
(F)  a letter of credit issued by a federal home loan bank.
(5)  "Investment security" means:
(A)  an obligation that in the opinion of the attorney general of the United States is a general obligation of the United States and backed by its full faith and credit;
(B)  a general or special obligation issued by a public agency that is payable from taxes, revenues, or a combination of taxes and revenues;  or
(C)  a security in which a public entity may invest under Subchapter A, Chapter 2256.
(6)  "Permitted institution" means:
(A)  a Federal Reserve Bank;
(B)  a clearing corporation, as defined by Section 8.102, Business & Commerce Code;
(C)  a bank eligible to be a custodian under Section 2257.041;  or
(D)  a state or nationally chartered bank that is controlled by a bank holding company that controls a bank eligible to be a custodian under Section 2257.041.
(7)  "Public agency" means a state or a political or governmental entity, agency, instrumentality, or subdivision of a state, including a municipality, an institution of higher education, as defined by Section 61.003, Education Code, a junior college, a district created under Article XVI, Section 59, of the Texas Constitution, and a public hospital.
(8)  "Public entity" means a public agency in this state, but does not include an institution of higher education, as defined by Section 61.003, Education Code.
(9)  "State agency" means a public entity that:
(A)  has authority that is not limited to a geographic portion of the state;  and
(B)  was created by the constitution or a statute.
(10)  "Trust receipt" means evidence of receipt, identification, and recording, including:
(A)  a physical controlled trust receipt;  or
(B)  a written or electronically transmitted advice of transaction.
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff. Sept. 1, 1993.  Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.48(a), eff. Sept. 1, 1995;  Acts 1995, 74th Leg., ch. 914, Sec. 5, eff. Sept. 1, 1995;  Acts 1997, 75th Leg., ch. 254, Sec. 1, eff. Sept. 1, 1997;  Acts 1997, 75th Leg., ch. 891, Sec. 3.22(4), eff. Sept. 1, 1997;  Acts 1997, 75th Leg., ch. 1423, Sec. 8.70, eff. Sept. 1, 1997;  Acts 1999, 76th Leg., ch. 62, Sec. 7.63, eff. Sept. 1, 1999.
Amended by:
Acts 2011, 82nd Leg., R.S., Ch. 783 (H.B. 2103), Sec. 1, eff. June 17, 2011.