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

Note: The Texas Education Agency maintains information regarding depository contracts for districts, including the forms referenced in this policy.

Selection

Method

Competitive Bidding

Notice

Requests for Proposals

Notice

Best Value

Award of Contract

  1. The district:
    1. Receives tying bids for the contract; or
    2. After evaluating the proposals for the contract, ranks two or more proposals equally;
  2. Each bank submitting a tying bid or proposal has bid or proposed to pay the district the maximum interest rates allowed by law by the Federal Reserve System and the FDIC; and
  3. The tying bids or proposals are otherwise equal in the judgment and discretion of the board.

Factors to Consider

  1. The interest rate bid or proposed on time deposits;
  2. The charge for keeping district accounts, records, and reports and furnishing checks;
  3. The ability of the bank submitting the bid or proposal to provide the necessary services and perform the duties as school district depository; and
  4. Any other matter the board considers to be in the best interest of a district.

Tie Bids or Proposals

  1. Determine by lot which of the banks submitting the tying bids or proposals will receive the contract; or
  2. Award a contract to each of the banks submitting the tying bids or proposals.

Rejection of Bids or Proposals

Conflict of Interest

Abstention

Contract

Term

Form

Authorized Collateral

Bond

Bond Conditions
  1. Faithful performance of all legal duties and obligations;
  2. Payment on presentation of all checks or drafts on order of the board;
  3. Payment on demand of any demand deposit;
  4. Payment, after the expiration of the required notice period, of any time deposit;
  5. Faithful keeping of school funds by the depository and accounting for the funds according to law; and
  6. Faithful paying over to the successor depository all balances remaining in the accounts.

Approved Securities

  1. A surety bond;
  2. An investment security;
  3. An ownership or beneficial interest in an investment security, other than an option contract to purchase or sell an investment security;
  4. A fixed-rate collateralized mortgage obligation that has an expected weighted average life of ten years or less and does not constitute a high-risk mortgage security;
  5. A floating-rate collateralized mortgage obligation that does not constitute a high-risk mortgage security; or
  6. A letter of credit issued by a federal home loan bank.

Texas Bullion Depository

Lufkin ISD

BDAE(LEGAL)-P

UPDATE 114

DATE ISSUED: 11/13/2019