Texas Finance Code

§ 184.301 — TRUST DEPOSITS

FI § 184.301Title 3. FINANCIAL INSTITUTIONS AND BUSINESSES · Part F. TRUST COMPANIES · Ch. 184. INVESTMENTS, LOANS, AND DEPOSITS · Art. D. TRUST DEPOSITS

Statute text

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(a)A state trust company may deposit trust funds with itself as an investment if:

(1)the deposit is authorized by the settlor or beneficiary;

(2)the state trust company maintains as security for the deposit a separate fund of securities, legal for trust investments, under control of a federal reserve bank or a clearing corporation, as defined by Section 8.102, Business & Commerce Code, within or outside this state;

(3)the total market value of the security is at all times at least equal to the amount of the deposit; and

(4)the separate fund is designated as a separate fund.

(b)A state trust company may make periodic withdrawals from or additions to a securities fund required by Subsection (a) as long as the required value is maintained. Income from the securities in the fund belongs to the state trust company.

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Legislative history

Added by Acts 1999, 76th Leg., ch. 62, Sec. 7.16(a), eff. Sept. 1, 1999.