2005 Texas Local Government Code CHAPTER 117. DEPOSITORIES FOR CERTAIN TRUST FUNDS AND COURT REGISTRY FUNDS

LOCAL GOVERNMENT CODE

CHAPTER 117. DEPOSITORIES FOR CERTAIN TRUST FUNDS AND COURT 
REGISTRY FUNDS

SUBCHAPTER A. GENERAL PROVISIONS


	§ 117.001. DEFINITIONS.  In this chapter:                                   
		(1)  "Bank" means a banking corporation or association, 
an individual banker, or a state or federal savings and loan 
association or savings bank.
		(2)  "Clerk" means a county clerk, a district clerk, or 
a county and district clerk.
		(3)  "Registry funds" means funds tendered to the clerk 
for deposit into the registry of the court.
		(4)  "Separate account" means funds transferred from a 
special account into a separate interest-bearing account.
		(5)  "Special account" means an account in a depository 
in which registry funds are placed.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1995, 74th Leg., ch. 552, § 1, eff. Sept. 1, 1995;  Acts 
1997, 75th Leg., ch. 505, § 1, eff. Sept. 1, 1997.


	§ 117.002. TRANSFER OF UNCLAIMED FUNDS TO 
COMPTROLLER.  Any funds deposited under this chapter, except cash 
bail bonds, that are presumed abandoned under Chapter 72, 73, or 75, 
Property Code, shall be reported and delivered by the county or 
district clerk to the comptroller without further action by any 
court.  The dormancy period for funds deposited under this chapter 
begins on the later of:
		(1)  the date of entry of final judgment or order of 
dismissal in the action in which the funds were deposited;
		(2)  the 18th birthday of the minor for whom the funds 
were deposited;  or  
		(3)  a reasonable date established by rule by the 
comptroller to promote the public interest in disposing of 
unclaimed funds.

Added by Acts 1991, 72nd Leg., ch. 153, § 26, eff. Sept. 1, 1991.  
Amended by Acts 1997, 75th Leg., ch. 329, § 2, eff. May 26, 1997;  
Acts 1997, 75th Leg., ch. 505, § 2, eff. Sept. 1, 1997;  Acts 
1997, 75th Leg., ch. 1037, § 2, eff. Sept. 1, 1997;  Acts 1997, 
75th Leg., ch. 1423, § 13.01, eff. Sept. 1, 1997.


	§ 117.003. COMPLIANCE WITH FEDERAL TAX LAW FOR FUNDS HELD 
UNDER THIS CHAPTER.  (a) If any funds deposited under this chapter 
are placed into an interest-bearing account, any person with a 
taxable interest in funds deposited to such account must submit 
appropriate tax forms and provide correct information to the 
district or county clerk so that the interest earned on such funds 
can be timely and appropriately reported to the Internal Revenue 
Service.  The information and forms provided to the district or 
county clerk under this section are not subject to public 
disclosure except to the extent necessary to effectuate compliance 
with federal tax law requirements.
	(b)  The district or county clerk is authorized to pay any or 
all of the interest earned on funds deposited under this chapter, 
without court order, to the Internal Revenue Service to satisfy tax 
withholding requirements.

Added by Acts 1997, 75th Leg., ch. 505, § 3, eff. Sept. 1, 1997.           

SUBCHAPTER B. ESTABLISHMENT OF DEPOSITORY


	§ 117.021. APPLICATIONS.  (a) The commissioners court of 
a county at its May regular term after a general election for state 
and county officers shall receive an application from a federally 
insured bank or banks in the county to be the depository for a 
special account held by the county clerk and the district clerks.  
The county shall contract with a federally insured bank or banks 
under this section for a two-year or four-year contract term.  The 
contract may, on request by the clerk and approval of the 
commissioners court, include a provision that the funds in a 
special account earn interest.  A request from the clerk that an 
account earn interest must be made, in writing, to the 
commissioners court not later than the 30th day before the date the 
county gives notice under Section 117.022 and shall be entered in 
the minutes of the court.
	(b)  If the contract is for a four-year term, the contract 
shall allow the bank to establish, on the basis of negotiations with 
the county, new interest rates and financial terms of the contract 
that will take effect during the final two years of the four-year 
contract if:
		(1)  the new financial terms do not increase the prices 
to the county by more than 10 percent;  and
		(2)  the county has the option to choose to use the 
initial variable interest rate option or to change to the new fixed 
or variable interest rate options proposed by the bank.
	(c)  A bank must file its application on or before 10 a.m. on 
the first day of the term.  The application must be accompanied by a 
certified check or cashier's check for at least one-half of one 
percent of the average daily balance of the registry funds held by 
the county clerk and the district clerk during the preceding 
calendar year, as determined by the county clerk and the district 
clerk on or before the 10th day before the date the application is 
required to be filed.  A certified check or cashier's check that 
complies with this section is a good-faith guarantee on the part of 
the applicant that if its application is accepted it will execute 
the bond required under this subchapter.  If the bank selected as 
depository does not provide the bond, the county shall retain the 
amount of the check as liquidated damages and the county shall 
select another depository as provided by this subchapter.
	(d)  If for any reason a county depository is not selected 
under Subsection (a), the commissioners court, at any subsequent 
time after 20 days' notice, may select, by the process described by 
Section 117.023 or by negotiated bid, one or more depositories in 
the same manner as at the regular term.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1991, 72nd Leg., ch. 326, § 2, eff. June 5, 1991;  Acts 1991, 72nd 
Leg., ch. 527, § 8, eff. Sept. 1, 1991;  Acts 1995, 74th Leg., ch. 
65, § 3, eff. Aug. 28. 1995;  Acts 1997, 75th Leg., ch. 505, § 
4, eff. Sept. 1, 1997.


	§ 117.022. NOTICE.  A county shall advertise or give 
notice that the county will accept applications to be the 
depository for registry funds held by the county clerk and the 
district clerk in the same manner as notice is required under 
Section 116.022.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 505, § 5, eff. Sept. 1, 1997.


	§ 117.023. SELECTION OF DEPOSITORY.  (a) At 10 a.m. on the 
first day of each term at which the commissioners court is required 
to receive applications to serve as the depository for registry 
funds held by the county clerk and the district clerk, the 
commissioners court shall enter the applications in the minutes of 
the court and select a depository.
	(b)  After a depository is selected, the commissioners court 
shall return the certified checks of the applicants that were not 
selected.  The commissioners court shall return the check of the 
selected applicant only after the applicant files a bond that is 
approved by the commissioners court.
	(c)  The conflict of interests provisions of Section 131.903 
apply to the selection of the depository.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1993, 73rd Leg., ch. 268, § 30, eff. Sept. 1, 1993;  Acts 
1997, 75th Leg., ch. 505, § 6, eff. Sept. 1, 1997.


	§ 117.024. QUALIFICATION AS DEPOSITORY.  Within 30 days 
after the date a bank is selected as a depository under this 
subchapter, the bank must qualify to serve as the depository in the 
same manner as is required for the qualification of county 
depositories under Chapter 116.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989.


	§ 117.025. DESIGNATION OF DEPOSITORY.  (a) After a bank 
selected to be a depository under this subchapter qualifies under 
Section 117.024 and is selected by the commissioners court, the 
commissioners court shall by an order entered in its minutes 
designate the bank or banks as the depository for the registry 
funds.
	(b)  A designation under Subsection (a) is effective until 
the designation and qualification of a successor depository or 
until April 15 following the term in which a depository must be 
selected under this subchapter, whichever is earlier.  If the term 
of a depository ends before the designation and qualification of a 
successor, the depository shall pay to the clerk in whose name the 
account is carried all registry funds due or on deposit.
	(c)  A designated depository shall provide security for the 
funds deposited into the registry fund accounts in the same manner 
as Subchapter C, Chapter 116.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 7, eff. Sept. 1, 1997.


	§ 117.026. ADVERTISEMENT FOR AND SELECTION OF DEPOSITORY 
OUTSIDE THE COUNTY.  (a) The commissioners court may select a 
federally insured bank or banks located outside the county to serve 
as the depository under this subchapter if:
		(1)  for any reason no bank located in the county 
applies to be designated as the depository;
		(2)  an application is not made for the entire amount of 
the registry funds;
		(3)  the commissioners court rejects all the 
applications submitted;        
		(4)  a depository selected by the commissioners court 
fails to qualify;     
		(5)  a depository becomes insolvent;  or                                      
		(6)  a new depository is selected because of the 
failure of the regular depository to execute a new bond under 
Section 117.057.
	(b)  Before selecting a depository under Subsection (a), the 
commissioners court shall advertise for applications from banks 
located in this state by publishing a notice of the selection once a 
week for two consecutive weeks in a newspaper of general 
circulation published in the county.  If such a newspaper is not 
published in the county, the commissioners court shall post the 
notice at the courthouse for two weeks.  The commissioners court may 
also publish the notice in any newspaper outside the county for the 
same length of time.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 8, eff. Sept. 1, 1997.


	§ 117.027. FAILURE TO SELECT DEPOSITORY.  If the 
commissioners court has not selected a depository under this 
subchapter, a clerk holding money, an evidence of debt, an 
instrument of writing, or any other article deposited into the 
registry of the court pending the result of a legal proceeding shall 
seal the article in a secure package and deposit the package in an 
iron safe or a bank vault.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 9, eff. Sept. 1, 1997.


	§ 117.028. APPLICATION OF COUNTY DEPOSITORY LAW.  Except 
as otherwise expressly stated, the provisions of Chapter 116 
relating to county depositories also apply to a depository selected 
under this chapter.

Added by Acts 1997, 75th Leg., ch. 505, § 10, eff. Sept. 1, 1997.          

SUBCHAPTER C. DEPOSITORY ACCOUNTS


	§ 117.052. DEPOSITS OF REGISTRY FUNDS BY COUNTY AND 
DISTRICT CLERKS.  (a) If a depository has been selected under 
Subchapter B, a county clerk or a district clerk who is to have for 
more than three days legal custody of money deposited in the 
registry of the court pending the result of a legal proceeding shall 
deposit the money in the depository.
	(b)  The funds deposited shall be carried at the depository 
selected under this chapter as a special account in the name of the 
clerk making the deposit.
	(c)  A clerk is responsible for funds deposited into the 
registry fund from the following sources:
		(1)  funds of minors or incapacitated persons;                                
		(2)  funds tendered in an interpleader action;                                
		(3)  funds paid in satisfaction of a judgment;                                
		(4)  child support funds held for more than three days;                       
		(5)  cash bonds;                                                              
		(6)  cash bail bonds;                                                         
		(7)  funds in an eminent domain proceeding;  and                              
		(8)  any other funds tendered to the clerk for deposit 
into the registry of the court.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 11, eff. Sept. 1, 1997;  Acts 2001, 
77th Leg., ch. 292, § 1, eff. May 23, 2001.


	§ 117.0521. CUSTODIANSHIP.  A clerk shall act only in a 
custodial capacity in relation to a registry fund, a special 
account, or a separate account.  A clerk is not a trustee for the 
beneficial owner and does not assume the duties, obligations, or 
liabilities of a trustee for a beneficial owner.

Added by Acts 1997, 75th Leg., ch. 505, § 12, eff. Sept. 1, 1997.          


	§ 117.053. WITHDRAWAL OF FUNDS.  (a) If a commissioners 
court selects a new depository under Subchapter B, when the 
depository qualifies, the county clerk and the district clerk shall 
transfer the funds in a special account from the old depository to 
the new depository, and the clerks may draw checks on the accounts 
for this purpose.
	(b)  Except as provided by Subsection (a), a clerk may not 
draw a check on special account funds held by a depository except to 
pay a person entitled to the funds.  The payment must be made under 
an order of the court of proper jurisdiction in which the funds were 
deposited except that an appeal bond shall be paid without a written 
order of the court on receipt of mandate or dismissal and funds 
deposited under Section 887, Texas Probate Code, may be paid 
without a written order of the court.  The clerk shall place on the 
check the style and number of the proceeding in which the money was 
deposited with the clerk.
	(c)  The clerk shall transfer any registry funds into a 
separate account when directed to by a written order of a court of 
proper jurisdiction or when the clerk is required to under Section 
887, Texas Probate Code.  The clerk shall transfer the funds into a 
separate account in:
		(1)  interest-bearing deposits in a financial 
institution doing business in this state that is insured by the 
Federal Deposit Insurance Corporation;
		(2)  United States treasury bills;                                            
		(3)  an eligible interlocal investment pool that meets 
the requirements of Sections 2256.016, 2256.017, and 2256.019, 
Government Code;  or
		(4)  a no-load money market mutual fund, if the fund:                         
			(A)  is regulated by the Securities and Exchange 
Commission;               
			(B)  has a dollar weighted average stated maturity 
of 90 days or fewer;  and
			(C)  includes in its investment objectives the 
maintenance of a stable net asset value of $1 for each share.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 13, eff. Sept. 1, 1997.


	§ 117.054. COUNTY EXPENSES PAID FROM INTEREST .  (a) If a 
special or separate account earns interest, the clerk, at the time 
of withdrawal, shall pay in a manner directed by a court with proper 
jurisdiction the original amount deposited into the registry of the 
court and any interest credited to the account in the manner 
calculated in Subsection (b).
	(b)  The interest earned on a special account or a separate 
account shall be paid in the following amounts:
		(1)  10 percent of the interest shall be paid to the 
general fund of the county to compensate the county for the 
accounting and administrative expenses of maintaining the account;  
and
		(2)  90 percent of the interest shall be credited to the 
special or separate account. 

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 505, § 14, eff. Sept. 1, 1997.


	§ 117.055. COUNTY EXPENSES PAID FROM FEES.  (a) To 
compensate the county for the accounting and administrative 
expenses incurred in handling the registry funds that have not 
earned interest, including funds in a special or separate account, 
the clerk shall, at the time of withdrawal, deduct from the amount 
of the withdrawal a fee in an amount equal to five percent of the 
withdrawal but that may not exceed $50. Withdrawal of funds 
generated from a case arising under the Family Code is exempt from 
the fee deduction provided by this section.
	(b)  A fee collected under this section shall be deposited in 
the general fund of the county.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 16(a), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 15, eff. Sept. 1, 1997;  Acts 1999, 
76th Leg., ch. 119, § 1, eff. Sept. 1, 1999.


	§ 117.056. OBLIGATIONS PAYABLE AT COUNTY SEAT.  (a) A 
depository selected under Subchapter B  shall pay a check drawn by a 
county or district clerk against funds deposited in the clerk's 
name on presentment of the check at the county seat if the funds 
subject to the check are in the possession of the depository.
	(b)  If the depository is not located at the county seat, the 
depository shall file a statement with the county clerk of the 
county designating a place at the county seat where, and a person by 
whom, deposits by the clerks will be received and checks drawn on 
the depository will be paid. The depository shall pay a check on 
presentment at the designated place if the depository has 
sufficient funds credited to the applicable account.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989.


	§ 117.057. NEW BOND.  (a) A commissioners court may 
require a depository selected under Subchapter B  to execute a new 
bond whenever the commissioners court considers it necessary for 
the protection of the county clerk's and the district clerk's 
registry funds.
	(b)  If a depository does not file a new bond required by an 
order of the commissioners court within five days after the date a 
copy of the order is served on the depository, the commissioners 
court may select another depository in the manner provided by 
Subchapter B.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 16, eff. Sept. 1, 1997.


	§ 117.058. ACCOUNTING FOR AND DISBURSING REGISTRY FUNDS 
IN COUNTIES WITH POPULATION OF 190,000 OR MORE.  (a) This section 
applies to a county with a population of 190,000 or more.
	(b)  If the commissioners court of a county provides a 
depository for the registry funds of the county clerk or the 
district clerk, those officers shall make reports under oath to the 
county auditor to properly reflect all registry funds received and 
disbursed by the officer, including all money remaining on hand at 
the time of the report.  The county auditor shall prescribe the form 
and frequency of the report.
	(c)  Each check issued for the disbursement of the funds must 
be issued in accordance with the laws providing for registry fund 
depositories.  Each check must be signed according to procedure 
established by the county auditor before delivery or payment.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 505, § 17, eff. Sept. 1, 1997.

SUBCHAPTER D. LIABILITIES AND PENALTIES


	§ 117.081. LIABILITY OF COUNTY AND DISTRICT CLERKS.  (a) 
A county clerk or a district clerk is not responsible for a loss of 
registry funds resulting from the failure or negligence of a 
depository.
	(b)  This section does not release a county clerk or a 
district clerk from:  
		(1)  liability for a loss of registry funds resulting 
from the clerk's official misconduct, negligence, or 
misappropriation of the funds;  or
		(2)  responsibility for keeping the registry funds safe 
until the clerk deposits them in a depository selected under 
Subchapter B.
	(c)  After a county clerk or a district clerk deposits in a 
depository selected under Subchapter B the registry funds held by 
the clerk, the clerk is relieved of the responsibility for keeping 
the funds secure.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 18, eff. Sept. 1, 1997.


	§ 117.083. LOSS OF REGISTRY FUNDS.  If registry funds 
held by a county clerk or a district clerk and deposited by the 
county with a depository selected under Subchapter B  are lost for 
any reason, including a loss due to the insolvency of the 
depository, the county is liable to the rightful owner of the funds 
for the full amount of the funds due the owner.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 19, eff. Sept. 1, 1997.


	§ 117.084.  DEPOSITORY TO PAY CHECK ON PRESENTMENT.  A 
depository selected under Subchapter B  shall pay a check drawn 
against funds deposited with the depository in a special or 
separate account on presentation of the check if the funds that are 
subject to the check are in the possession of the depository.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 1, § 17(d), eff. Aug. 28, 1989;  Acts 
1997, 75th Leg., ch. 505, § 20, eff. Sept. 1, 1997.

SUBCHAPTER E. SPECIAL PROVISIONS APPLYING TO FUNDS PAID INTO COURT 
REGISTRY IN COUNTY WITH POPULATION OF MORE THAN 2.4 MILLION


	§ 117.111. SUBCHAPTER APPLICABLE TO COUNTY WITH 
POPULATION OF 2.4 MILLION OR MORE.  This subchapter applies only to 
a county with a population of 2.4 million or more.

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.       


	§ 117.112. MONEY AFFECTED.  This subchapter applies to 
the following kinds of money paid into the registry of any court for 
which a clerk is or may become responsible:
		(1)  funds of minors or incapacitated persons;                                
		(2)  funds tendered in connection with a bill in 
interpleader;  or          
		(3)  any other funds.                                                         

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.  Amended by Acts 1999, 76th Leg., ch. 196, § 1, eff. Aug. 
30, 1999;  Acts 2001, 77th Leg., ch. 292, § 2, eff. May 23, 2001.


	§ 117.113. DEPOSITORY CONTRACT.  The commissioners court 
of the county collecting the funds may contract with one or more 
banks in the county for the deposit of the funds in a special 
account to be called the "registry fund."

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.       


	§ 117.114. NOTICE.  Once each week for at least three 
consecutive weeks before the date the contract will be awarded, the 
county judge shall place over the judge's name in a newspaper 
published in the county a notice that the commissioners court 
intends to make the contract.  A notice shall also be posted at the 
courthouse door of the county.

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.       


	§ 117.115. APPLICATIONS.  A bank in the county that wants 
to be a special depository for the registry fund is subject to the 
same application provisions as those prescribed by Section 116.023 
for the applicants for the county depository contract.

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.       


	§ 117.116. SELECTION OF DEPOSITORY.  At the time and 
place stated in the notice, the commissioners court shall select a 
special depository for the registry fund in accordance with the 
same provisions as those prescribed by Section 116.024 for the 
selection of a county depository.

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.       


	§ 117.117. QUALIFICATION AS DEPOSITORY.  A bank selected 
as a special depository for the registry fund must qualify as the 
depository in accordance with the same provisions as those 
prescribed by Subchapter C, Chapter 116, for the qualification as a 
county depository.

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.       


	§ 117.118. APPLICATION OF COUNTY DEPOSITORY LAW.  Matters 
regarding special depositories for the registry fund are subject to 
the same provisions as those prescribed by Chapter 116 regarding 
county depositories.

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 752, § 1, eff. Aug. 
26, 1991.


	§ 117.119. DEPOSIT OF FUNDS.  Money paid into the 
registry of the court shall be deposited by a clerk into the 
registry fund at the special depository.

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.  Amended by Acts 1991, 72nd Leg., ch. 752, § 1, eff. Aug. 
26, 1991;  Acts 1999, 76th Leg., ch. 196, § 2, eff. Aug. 30, 1999.


	§ 117.120. CUSTODIANSHIP.  A clerk shall act only in a 
custodial capacity regarding the registry fund, is not considered 
to be a trustee for the beneficial owner, and is not considered to 
have assumed the duties, obligations, or liabilities of a trustee 
for the beneficial owner.

Added by Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 
1989.  Amended by Acts 1999, 76th Leg., ch. 196, § 3, eff. Aug. 
30, 1999.


	§ 117.121. DISBURSEMENT OF FUNDS.  (a) Money may be paid 
from the registry fund only on checks or drafts signed by a clerk on 
the written order of the court with proper jurisdiction, except 
that the clerk may make a payment without court order for unpaid 
court costs from a cash bond deposited in connection with an appeal 
after the appellate court issues its mandate in the appeal if the 
costs remain unpaid for 45 days after the mandate is issued.
	(b)  All checks or drafts issued for the disbursement of the 
registry fund must be submitted to the county auditor for the 
auditor's countersignature before delivery or payment.  The county 
auditor may countersign the checks only on written evidence of the 
order of the judge of the court in which the funds have been 
deposited, authorizing the disbursement of the funds.
	(c)  Notwithstanding Subsections (a) and (b), a disbursement 
under an order of a court in which registry funds have been 
deposited may be made by electronic transfer if:
		(1)  the designated recipient of the money submits to a 
clerk a written request for the transfer;
		(2)  the clerk gives written approval for the transfer;  
and                
		(3)  a county auditor countersigns the approval.                              
	(d)  A clerk may charge a reasonable fee, subject to the 
approval of the recipient of the money, for an electronic transfer 
of a disbursement from a registry fund.

Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 1989.  
Renumbered from § 117.122 by Acts 1991, 72nd Leg., ch. 752, § 
2, eff. Aug. 26, 1991;  Acts 1997, 75th Leg., ch. 505, § 21, eff. 
Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 196, § 4, 
eff. Aug. 30, 1999.


	§ 117.122. INTEREST.  (a) The interest derived from money 
on deposit in the registry fund shall be paid as earned as follows:
		(1)  a sum equal to 10 percent of the interest shall be 
paid into the general fund of the county to reimburse the county for 
the expenses of maintaining the registry fund;  and
		(2)  the remaining 90 percent of the interest shall be 
credited to the registry fund.
	(b)  For each withdrawal, a clerk shall pay out the original 
amount deposited in the registry of the court and 90 percent of the 
interest earned on that amount at the time and in the manner 
directed by the court with proper jurisdiction.

Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 1989.  
Renumbered from § 117.123 and amended by Acts 1991, 72nd Leg., 
ch. 752, § 3, eff. Aug. 26, 1991.  Amended by Acts 1999, 76th 
Leg., ch. 196, § 5, eff. Aug. 30, 1999.


	§ 117.123. AUDIT.  (a) In addition to the regular 
auditing procedures of the county auditor, the registry funds shall 
be audited at the end of each county fiscal year by an independent 
certified public accountant or a firm of independent certified 
public accountants of recognized integrity and ability selected by 
the commissioners court.  
	(b)  A written report of the audit shall be delivered to the 
county judge, each county commissioner, and a clerk within 90 days 
after the last day of the fiscal year.  A copy of the audit shall be 
kept at the clerk's office and shall be open to inspection by any 
interested person during normal office hours.  The cost of the audit 
shall be paid by the county.

Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 1989.  
Renumbered from § 117.124 and amended by Acts 1991, 72nd Leg., 
ch. 752, § 4, eff. Aug. 26, 1991.  Amended by Acts 1999, 76th 
Leg., ch. 196, § 6, eff. Aug. 30, 1999.


	§ 117.124. LIABILITY OF CLERK.  (a) A clerk is not 
responsible for:       
		(1)  a loss of funds resulting from the failure or 
negligence of a depository;  or
		(2)  the safety of funds after deposit in a depository 
selected under this subchapter.
	(b)  A clerk is responsible for:                                               
		(1)  a loss of funds resulting from the clerk's official 
misconduct, negligence, or misappropriation of the funds;  and
		(2)  the safety of funds before deposit in a depository 
selected under this subchapter.

Acts 1989, 71st Leg., ch. 1, § 17(b), eff. Aug. 28, 1989.  
Renumbered from § 117.126 and amended by Acts 1991, 72nd Leg., 
ch. 752, § 5, eff. Aug. 26, 1991.  Amended by Acts 1999, 76th 
Leg., ch. 196, § 7, eff. Aug. 30, 1999.


	§ 117.125. TRANSFER OF MONEY.  (a) In the absence of a 
contrary order from a court having jurisdiction over the registry 
fund, a clerk may transfer money deposited in the fund into a 
separate account.
	(b)  A clerk shall transfer all money deposited in a registry 
fund under Section 887, Texas Probate Code, into a separate 
account.
	(c)  Money transferred into a separate account under this 
section must be:   
		(1)  transferred into an account authorized for 
investment under Chapter 2256, Government Code, by a local 
government or investment pool;  and
		(2)  invested according to the investment officer 
designated under Section 2256.005, Government Code, by the 
investing entity of which the county is a member.
	(d)  A transfer of money into a separate account under this 
section is exempt from the requirements prescribed by Section 
117.121 for disbursements from registry funds.
	(e)  An investment of money transferred from a registry fund 
under this section is subject to the limitations, policies, and 
standards of care provided by Chapter 2256, Government Code.

Added by Acts 1999, 76th Leg., ch. 196, § 8, eff. Aug. 30, 1999.