CCA(LEGAL) - FISCAL MANAGEMENT: DEPOSITORY BANK

Note: The ESC should consider any applicable conflict of interest rules when selecting a depository bank. [See BBFA]

Legal Action

Collateral

Gov't Code 2257.023

Bank Depository Contracts

  1. An officer or employee of the ESC who does not have the duty to select the ESC's depository is an officer, director, or shareholder of the bank; or
  2. One or more officers or employees of the ESC who have the duty to select the ESC's depository are officers or directors of the bank or own or have a beneficial interest, individually or collectively, in ten percent or less of the outstanding capital stock of the bank, if:
    1. A majority of the members of the Board of the ESC vote to select the bank as a depository; and
    2. The interested officer or employee does not vote or take part in the proceedings.

Local Gov't Code 131.903(a)

Education Service Center Region 11

CCA(LEGAL)-ESCA

UPDATE 9

DATE ISSUED: 3/28/2005