§ 274.203 — DEPOSIT OF MONEY WITH AFFILIATED BANK.

Texas § 274.203

• Jurisdiction: Texas
• Code FI: Finance Code

Text

Sec. 274.203. DEPOSIT OF MONEY WITH AFFILIATED BANK. (a) A subsidiary trust company may deposit with an affiliated bank of the company fiduciary money that is being held pending an investment, distribution, or payment of a debt if:
(1) the company maintains under its control as security for the deposit a separate fund of securities legal for trust investments pledged by the bank;
(2) the total market value of the securities is at all times at least equal to the amount of the deposit; and
(3) the fund of securities is designated as a separate fund.
(b) The bank may make periodic withdrawals from or additions to the fund of securities required by this section only if the required value is maintained.
(c) Income from securities in the fund belongs to the bank.
(d) Security for a deposit under this section is not required to the extent the deposit is insured or otherwise secured under law.

Legislative History

Acts 1997, 75th Leg., ch. 1008, Sec. 1, eff. Sept. 1, 1997.