Tex. Local Government Code § 131.901
OUT-OF-STATE DEPOSITORY PROHIBITED
Texas · Texas Local Government Code · Status: effective
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- Citation
- Tex. Local Government Code § 131.901, OUT-OF-STATE DEPOSITORY PROHIBITED, Texas, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/689456
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Full text
(a) The governing body of a political subdivision, including a county, municipality, school district, or other district, may not designate a financial institution located outside the state as a depository for funds under the governing body's jurisdiction. An out-of-state financial institution is not considered to be located outside this state to the extent the governing body designates a branch office of such institution that is located in this state.
(b) An institution selected as a paying agent or trustee for specific bonds or obligations or an institution selected by the governing body to provide safekeeping services is not considered a depository for purposes of this section.