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Tex. Gov't Code § 2257.082

FUNDS OF EXEMPT INSTITUTION

Known as the Public Funds Collateral Act

The act spans §§ 2257.001 to 2257.114 (41 sections).

Added by Acts 1993, 73rd Leg., ch. 268, Sec. 1, eff

An exempt institution is not required to have its funds fully insured or collateralized at all times if:

(1) the funds are held by:

(A) a custodian of the institution's assets under a trust agreement; or

(B) a person in connection with a transaction related to an investment; and

(2) the governing body of the institution, in exercising its fiduciary responsibility, determines that the institution is adequately protected by using a trust agreement, special deposit, surety bond, substantial deposit insurance, or other method an exempt institution commonly uses to protect itself from liability.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.