Tex. Loc. Gov't Code § 131.903 · Subchapter Z. MISCELLANEOUS PROVISIONS
CONFLICT OF INTEREST.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A bank is not disqualified from serving as a depository for funds of a political subdivision if:
(1) an officer or employee of the political subdivision who does not have the duty to select the political subdivision's depository is an officer, director, or shareholder of the bank; or
(2) one or more officers or employees of the political subdivision who have the duty to select the political subdivision's depository are officers or directors of the bank or own or have a beneficial interest, individually or collectively, in 10 percent or less of the outstanding capital stock of the bank, if:
(A) a majority of the members of the board, commission, or other body of the political subdivision vote to select the bank as a depository; and
(B) the interested officer or employee does not vote or take part in the proceedings.
(b) This section may not be construed as changing or superseding a conflicting provision in the charter of a home-rule municipality.
Notes and commentary — not statutory text
History
Added by Acts 1993, 73rd Leg., ch. 268, Sec. 36, eff. Sept. 1, 1993.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/LG/htm/LG.131.htm
- Text hash
- sha256 af6acbba52dc4bc9350b2706e1dd63c2eabc0cad6acfe50b3d79470d6916d12a
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
Cited by 5 provisions
Provisions in this library whose text cites Tex. Loc. Gov't Code § 131.903. Each shows the citation as that text prints it.
Local Government Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.