2005 Texas Local Government Code CHAPTER 104. MUNICIPAL INVESTMENT OF TRUST FUNDS AND SPECIAL DEPOSITS

LOCAL GOVERNMENT CODE

CHAPTER 104. MUNICIPAL INVESTMENT OF TRUST FUNDS AND SPECIAL 
DEPOSITS


	§ 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, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1991, 72nd Leg., ch. 597, § 86, eff. Sept. 1, 1991.


	§ 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, § 1, eff. Sept. 1, 1987.                    


	§ 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not liable for interest earned on any amount withdrawn before 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, § 1, eff. Sept. 1, 1987.                    


	§ 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, § 1, eff. Sept. 1, 1987.                    


	§ 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, § 1, eff. Sept. 1, 1987.