CHAPTER 104. MUNICIPAL INVESTMENT OF TRUST FUNDS AND SPECIAL DEPOSITS - Texas Statutes

LOCAL GOVERNMENT CODE

TITLE 4. FINANCES

SUBTITLE A. MUNICIPAL FINANCES

CHAPTER 104. MUNICIPAL INVESTMENT OF TRUST FUNDS AND SPECIAL

DEPOSITS

Sec. 104.001. CHAPTER APPLICABLE TO CERTAIN HOME-RULE

MUNICIPALITIES. This chapter applies only to a home-rule

municipality with a population of one million or more whose

charter provides for an elected comptroller, auditor, or

treasurer.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Amended by Acts 1991, 72nd Leg., ch. 597, Sec. 86, eff. Sept. 1,

1991.

Sec. 104.002. AUTHORITY TO MAKE INVESTMENTS. (a) The

municipality may invest trust funds and special deposits in the

custody of the municipality.

(b) The municipal official responsible for managing and

conducting the municipality's fiscal affairs shall make the

investments. The investments are subject to the supervision and

control of the governing body, as established by ordinance.

(c) The municipality may invest the funds in amounts that are

not required for immediate disbursement according to official

estimates by purchasing obligations of the United States

government or by placing the funds in time deposit accounts with

one or more depository banks of the municipality.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 104.003. EFFECT OF EARLY WITHDRAWAL. If any of the funds

placed in time deposit accounts are required before maturity,

they shall be made available by the depository bank, but the bank

is not liable for interest earned on any amount withdrawn before

maturity.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 104.004. INTEREST. The municipal official responsible for

managing and conducting the fiscal affairs shall receive the

interest earned on the investments and shall place the interest

in the municipal general fund as compensation to the municipality

for holding and handling the trust funds and special deposits for

the benefit of the persons ultimately entitled to receive the

funds and deposits.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.

Sec. 104.005. CUMULATIVE EFFECT WITH CHARTER PROVISIONS. This

chapter is cumulative of the municipal powers of investment

derived from the municipal charter.

Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987.