Texas Natural Resources Code
§ 161.1732 — LENDING SECURITIES
NR § 161.1732Title 7. RESOURCES PROGRAMS · Ch. 161. VETERANS LAND BOARD · Art. E. VETERANS' LAND FUND
Statute text
View on source(a)In managing the assets of the fund, the board may:
(1)select one or more commercial banks, depository trust companies, or other entities to serve as a custodian of the securities of the fund; and
(2)authorize the custodian to lend the securities held under Subdivision (1) as provided by this section and by rules adopted by the board.
(b)To be eligible to lend securities under this section, a custodian selected by the board under Subsection (a) must be experienced in the operation of a fully secured securities loan program and must:
(1)maintain adequate capital in the prudent judgment of the board to assure the safety of the securities;
(2)execute an indemnification agreement satisfactory in form and content to the board fully indemnifying the board against loss resulting from the custodian's operation of a securities loan program for the fund's securities; and
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Legislative history
Added by Acts 1997, 75th Leg., ch. 71, Sec. 2, eff. May 9, 1997. Amended by Acts 1999, 76th Leg., ch. 134, Sec. 2, eff. May 20, 1999.