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TITLE 31NATURAL RESOURCES AND CONSERVATION
PART 10TEXAS WATER DEVELOPMENT BOARD
CHAPTER 367AGRICULTURAL WATER CONSERVATION PROGRAM
RULE §367.24Custodian's Deposit of Pledged Security with Another Institution

(a) The custodian may deposit a pledged security with one of the following institutions:

  (1) a Federal Reserve Bank;

  (2) a clearing corporation as defined by §8.102, Texas Business and Commerce Code;

  (3) a bank eligible to be a custodian under §367.23 of this title (relating to Deposit of Pledged Securities with Custodian); or

  (4) a state or nationally chartered bank that is controlled by a bank holding company that controls a bank eligible to be a custodian under §367.23 of this title.

(b) The custodian may not deposit a pledged security with an eligible lending institution or an entity of which the eligible lending institution is a branch.

(c) If a deposit is made under subsection (a) of this section, the institution to which the deposit is made shall:

  (1) hold the pledged security to secure funds the board deposits with the eligible lending institution; and

  (2) on receipt of deposit, immediately issue to the custodian an advice of transaction or other document that is evidence of the deposit of the pledged security.

(d) An institution may apply book entry procedures when an investment security held by a custodian is deposited under this section. The records must at all times state the name of the custodian that deposits an investment security in the institution.


Source Note: The provisions of this §367.24 adopted to be effective May 9, 2005, 30 TexReg 2680

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