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(a) A corporate trustee may deposit trust funds with itself as a permanent investment if authorized by the settlor in the instrument creating the trust or if authorized in a writing delivered to the trustee by a beneficiary currently eligible to receive distributions from a trust created before January 1, 1988.
(b) A corporate trustee may deposit with itself trust funds that are being held pending investment, distribution, or payment of debts if, except as provided by Subsection (d) of this section:
(1) it maintains under control of its trust department as security for the deposit a separate fund of securities legal for trust investments;
(2) the total market value of the security is at all times at least equal to the amount of the deposit; and
(3) the separate fund is marked as such.
(c) The trustee may make periodic withdrawals from or additions to the securities fund required by Subsection (b) of this section as long as the required value is maintained. Income from securities in the fund belongs to the trustee.
(d) Security for a deposit under this section is not required for a deposit under Subsection (a) or under Subsection (b) of this section to the extent the deposit is insured or otherwise secured under state or federal law.
Cite this article: FindLaw.com - Texas Property Code - PROP § 113.057. Deposits by Corporate Trustee with Itself - last updated April 14, 2021 | https://codes.findlaw.com/tx/property-code/prop-sect-113-057/
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