Ken Paxton


Public Funds


Time deposit account fully insured by the Federal Deposit Insurance Corporation is within the scope of "other obligation" under Government Code subsection 2256.009(a)(4), Consistent with Attorney General Opinion GA-0834 (2011), a court could conclude|Federal home loan bank - whether an agency or instrumentality of United States within scope of Government Code subsection 2256.009(a)(1) - we cannot predict how Texas court would conclude as a matter of law|Certificate of deposit investment secured by letter of credit from such entity comports with Government Code subsection 2256.009(a)(1). To extent depository institution is agency or instrumentality of United States and not otherwise limited by any governing statute in guaranteeing its obligations in manner similar to section 1435, title 12, United States Code, a court would likely determine that|Deposit of funds in certificate of deposit must be to depository institution with main or branch office in Texas in accordance with Government Code section 2256.010(a)(1)-(3)|Money market deposit in amount exceeding the amount of Federal Deposit Insurance Corporation insurance that is secured by another obligation in Government Code section 2256.009(a)(4) complies with Public Funds Investment Act and Public Funds Collateral Act. Court would likely conclude that

Opinion File