§ 70-471. Authorized collateral and collateral procedures

(a) The county commissioners court shall select the form of securities pledge contract or surety bond used to secure county funds. Addition, withdrawal, or substitution of collateral for county funds shall be subject to the official approval of the county commissioners court.

(b) The county treasurer is authorized to add, substitute, or withdraw collateral on a daily basis as needed to fully collateralize county assets, with formal approval of such actions to take place at the next official meeting of the commissioners court.

(c) The investment of any county funds shall be collateralized, consistent with federal and state law, the county's bank depository contract, and the county investment policy, without exception, in one or more of the following manners:

(1) A direct obligation of the United States.

(2) An obligation that in the opinion of the Attorney General of the United States is a general obligation of the United States and backed by its full faith and credit.

(3) An obligation, the principal of and interest of which are unconditionally guaranteed by the United States.

(4) An obligation of an agency or instrumentality of the United States, including a mortgage-backed security of the agency or instrumentality; however, obligations of the nature described in V.T.C.A., Government Code § 2256.009(b), shall not be eligible for use as collateral for any county funds.

(5) A general or special obligation issued by a public agency, payable from taxes, revenues, or a combination of taxes and revenues that has been rated as to investment quality by a nationally recognized rating agency that has a current rating of not less than A or its equivalent.

(6) Any security in which a public entity may invest under the Public Funds Investment Act of 1995.

(Ord. No. 99-2004, § XI, 10-26-1999; Ord. No. 2000-2287, § XI, 11-14-2000)