BDAE(LOCAL) - OFFICERS AND OFFICIALS: DUTIES AND REQUIREMENTS OF DEPOSITORY

Selecting a Depository

The Superintendent or designee shall have the authority to determine the method of selecting a depository in accordance with BDAE(LEGAL).

Contract

The District shall require the depository to attach to the contract and file with the District a bond payable to the District in an amount determined by the Board, in accordance with Education Code 45.208 (b) and (c). In lieu of such bond, the depository may pledge or deposit with the District approved securities in an amount sufficient to adequately protect the funds of the District, consistent with Education Code 45.208 (f).

Allowable Collateral

Eligible securities for collateralization of deposits are those defined as "eligible securities" by the Public Funds Collateral Act.

Monitoring Collateral Adequacy

The District shall require monthly reports with market values of pledged securities from all financial institutions with which the District has collateralized deposits. The investment officers shall monitor adequacy of collateralization levels to verify market values and total collateral positions.

Release of Pledged Securities

The investment officer or designee shall approve in writing the release or substitution of any securities pledged to the District that are being held by any organization.

Austin ISD

BDAE(LOCAL)-X

UPDATE 81

DATE ISSUED: 9/11/2007