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not liable for interest earned on any amount withdrawn before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.
