Texas § LG.116.021 - DEPOSITORY AND SUBDEPOSITORY CONTRACTS

§ LG.116.021. DEPOSITORY AND SUBDEPOSITORY CONTRACTS

DEPOSITORY AND SUBDEPOSITORY CONTRACTS. (a) The commissioners court of a county shall select by the process provided by this subchapter or by Subchapter C , Chapter 262 , one or more banks in the county and enter a contract with each selected bank for the deposit of the county's public funds. The county shall contract with a bank under this section for a two-year or four-year contract term. On expiration of a contract under this section, the contract may be renewed for two years under terms negotiated by the commissioners court. (b) If the contract is for a four-year term, the contract shall allow the county to establish, on the basis of negotiations with the bank, new interest rates and financial terms of the contract that will take effect during the final two years of the four-year contract. (c) On the renewal of a contract, the county may negotiate new interest rates and terms with the bank for the next two years in the same way and subject to the same conditions as provided by Subsection (b). (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 116.024 or by negotiated bid, one or more depositories in the same manner as at the regular time. (e) If the commissioners court selects a depository by the process provided by Subchapter C , Chapter 262 , the depository may be selected by: (1) competitive bidding; or (2) another method under that subchapter that the county is qualified to use. Acts 1987, 70th Leg., ch. 149, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1991, 72nd Leg., ch. 527, Sec. 2, eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 65, Sec. 1, eff. Aug. 28, 1995. Amended by: Acts 2007, 80th Leg., R.S., Ch. 899 (H.B. 2641 ), Sec. 1, eff. June 15, 2007.