SECTION 367.17. Board Obligations in Linked Deposit Agreements

(a) Upon execution of a linked deposit agreement by the executive administrator and an eligible lending institution, the board, acting through its executive administrator, shall:

(1) deposit with the lending institution the amount of money identified in the linked deposit agreement from the fund; and

(2) perform such other terms and conditions as specified in the linked deposit agreement.

(b) The board or the executive administrator may withdraw linked deposits and accrued interest from the lending institution without penalty according to the terms of the linked deposit agreement or if the institution ceases to be either a state depository as designated by the Texas comptroller of public accounts or a Farm Credit System institution headquartered in Texas.

Source Note: The provisions of this §367.17 adopted to be effective July 6, 2004, 29 TexReg 6348; amended to be effective May 9, 2005, 30 TexReg 2680