ORDER NO. 19264
APPROVAL OF RESOLUTION TO TEXAS TREASURY
SAFEKEEPING TRUST COMPANY
On this the 11th day of December 1989, upon motion made by
Commissioner Baldwin, seconded by Commissioner Holekamp, the
Court unanisously approved a resolution to the Texas Treasury
Safekeeping Trust Company.
RESOLUTION
WHEREAS, Kerr County is an agency or political subdivision of the State of Texas
(the "Participant") and is empowered to delegate to a public funds
investment pool the authority to invest funds and to act as custodian
of investments purchased with local investment funds; and
WHEREAS, It is in the best interest of the Participant and its inhabitants to
invest local funds in investments that yield the highest possible rate
of return while providing necessary safekeeping and protection of the
principal; and
WHEREAS, The Treasurer of the State of Texas acting by and through the Texas
Treasury Safekeeping Trust Company (the "Trust Company") has
created "TexPool", a public funds investment pool to effectuate the
goals of providing investments at the highest possible yield and
maintaining complete safety of the funds of the Participant,
NC7~N
THEREFORE, Be it resolved as follows:
1 . That Kerr County establish an account in its name with the
Trust Company's Public Funds Investment Pooi "TexPool" for the
purpose of transmitting local funds for investment by the Trust
Company in TexPool.
2. That the following individuals whose signatures appear
below are officers or employees of the Participant and are
each hereby authorized to transmit furids to the Trust
Company for investment in TexPool and are each further
authorized to withdraw funds from time to time, to issue
letters of instruction, and to take all other actions deemed
necessary or appropriate for the investment of local funds:
NAME: DOROTHY HILBURN TITLE: COUNTY TREASURER
SIGNATURE: b-a-.:~~~ 1.~ D~ ~
3. That this Resolution and its authorization shall continue in
full force and effect until amended or. revoked by the Participant
and until the Trust Company receives a copy of any such
amendment or revocation, until such time the Trust Company is
entitled to rely on same.
This Resolution is hereby introduced and adopted by the Participant at its regular
meeting held on the 11th day of December, 1989.
NAME OF PART~IPANT: KERR COUNTY
DANNY/R. EDWARDS, County Judge
ATTEST:
r __
PATRICIA DYE, Cou ty Clerk


[SAMPLE RESOLUTION]
WHEREAS, (name of aoencv or political subdivisionl is an
agency or political subdivision of the State of Texas ( the
"Participant") and is empowered to delegate to a public funds
investment pool the authority to invest funds and to act as
custodian of investments purchased with local investment funds; and
WHEREAS, it is in the best interest of the Participant and
its inhabitants to invest local funds in investments that yield
the highest possible rate of return while providing necessary
safekeeping and protection of the principal; and
WHEREAS, the Treasurer of the State of Texas acting by and
through the Texas Treasury Safekeeping Trust Company .(the "Trust
Company") has created "TexPool", a public funds investment pool to
effectuate the goals of providing investments at the highest
possible yield and maintaining complete safety of the funds of the
Participant,
NOW THEREFORE, be it resolved as follows:
1. That (name of agencv or political subdivision L
establish an account in its name with the Trust
Company's Public Funds Investment Pool "TexPool"
for .the purpose of transmitting local funds for
investment by the Trust Company in TexPool.
2. That the following individuals whose signatures
appear below are officers or employees of the
Participant and are each hereby authorized to
'transmit funds to the Trust Company for investment
in TexPool and are each further authorized to
withdraw funds from time to time, to issue letters
of instruction, and to take all other actions deemed
necessary or appropriate for the investment of local
funds:
Name: Title:
Signature:
Name: Title:
Signature:
Name: Title:
Signature:
Name: Title:
Signature:
Name: Title:
Signature:
3. That this Resolution and its authorization shall
continue in full force and effect until amended or
revoked by the Participant and until the Trust
Company receives a copy of any such amendment or
revocation, until such time the Trust Company is
entitled to rely on same.
This Resolution is hereby introduced and adopted by the
Participant at its regular/special meeting held on the day of
_, 1989. -
NAME OF PARTICIPANT
By:
Official Signature
ATTEST• (seal)
TEXAS TREASURY SAFEKEEPING TRUST COMPANY
Texas Local Government Investment Pool
Participation Agreement
PREAMBLE
This participation agreement dated as of the _ day of , 19J
(the "Participation Agreement") is made and entered into by and between theTexas Treasury Safekeep-
ing Trust Company (the "Trust Company") and (the "Participant").
WHEREAS, the Interlocal Cooperation Act, Tex. Rev. Civ. Slat. Ann. art. 4413 (32a) as
amended (the "Act") provides for the creation of public funds investment pools to which any political
subdivision may delegate, by contract, the authority to hold legal title as custodian and to make
investments purchased with local investment funds; and
WHEREAS, the Texas Treasury Safekeeping Trust Company (the "Trust Company")
pursuant to Sec.404.103 et sec of the Texas Government Code may receive, transfer and disburse money
and securities belonging to state agencies and local political subdivisions of the state; and
WHEREAS, the Trust Company has created theTexas Local Government Investment Pool
("TexPool") as a public funds investment pool, which TexPool funds shall be invested in certain eligible
investments as more fully described hereafter,
NOW THEREFORE for and in consideration of the mutual promises, covenants and
agreements herein contained and other good valuable consideration, the receipt and sufficienry of which
are hereby acknowledged, the parties hereto agree with each other as follows:
ARTICLE I.
llEF[NITIONS
"ACH"shall mean Automated Clearing House electronic fund transfers.
"Authorized Investments" shall mean, in accordance with the Act, the purchase, sale and investment of
funds under TexPool's control in the following:
1. Obligations of the Uni[ed States or its agencies and instrumentalities;
2. Direct obligations of the State of Texas or its agencies;
3. Other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the
State of Texas or the United States;
4. Obligations of states, agencies, counties, cities, and other political subdivisions of any state having been
rated as to investment quality by a nationally recognized investment rating firm and having received a
rating of not less than A or its equivalent;
5. Certificates of Deposit issued by state and national banks domiciled in this state that are:
A. Guaranteed or insured by the Federal Deposit Insurance Corporation, or its successor,
or
B. Secured by obligations that are described by subdivisions 1-4 of this subsection, which
are intended to include all direct agency or instrumentality issued mortgage backed
securities rated AAA by a nationally recognized rating agency, or by Chapter 726, Acts
of the 67th Legislature, Regular Session, 1981 (art. 2529b-1 Vernon's Tex. Civ. Stat.),
and that have a market value of not less than the principal amount of the certificates;
6. Fully collateralized direct repurchase agreements having a defined termination date, secured by obliga-
tionsdescribed bySubdivision 1 of this subsection, pledged with a third partyselected or approved by the
political entity, and placed through a primary government securities dealer, as defined by the Federal
Reserve, or a bank domiciled in this state; and
7. Certificates of Deposit issued by savings and loan associations domiciled in this state that are:
A. GuaranteedorinsuredbytheFederalSavingsandLoanlnsuranceCorporationorilssuceessors;
or
B. Secured by obligations that are described by Subdivisions 1-4 of this subsection, which are
intended to include all direM federal agencies or instrumentality issued mortgage backed
securities that have a market value of not less than the principal amount of the certificates.
8. Such other investments as may be authorized by Tex. Rev. Civ. Star. art. 842a-2 as amended from time to
time.
"Authorized Representative(s) ofthe Participant" shall mean those individuals who are authorized to execute documents
and take such other necessary actions under this Participation Agreement as evidenced on behalf of the Participant by duly
enacted resolution of the Participant, a certified copy of which is on file with the Trust Company.
"Authorized Representative(s) of theTrust Companv" shall mean those employees of theTreasury authorized to execute
documents and take such other necessary actions including the investment of funds under this Participation Agreement
on behalf of the Trust Company as evidenced by resolution of the Trust Company, a certified copy of which is on file with
the Participant.
"Data Collection Center" shall mean a third party vendor used by the Trust Company to collect and disburse fund
remittance information reported by the Participants.
"Letter of Instructions" shall mean a written authorization and direction to the Trust Company signed by an Authorized
Representative of the Participant.
"Tr_ casurv"shat) mean the Texas State Treasury Department.
"Wire Transfers"shall mean directlywired transfers otTexPool funds prof Participant's funds through the Federal Reserve
Bank System.
ARTICLE II.
PARTICIPATION REQUIREMENTS
Section 2.01. The Participation Agreement. The Participant must execute a Participation Agreement before depositing
any funds into TexPool. Further, a duty certi0ed copy of a resolution by the Participant designating Authorized Representatives
of the Participant must accompany the executed Participation Agreement.
Section 2.02. Creation of TexPool. The Treasurer acting on behalf of the Trust Company hereby creates and establishes
TexPool as a separate and distinct trust fund held outside theTreasury Department. The Trust Companyshall receive, hold, invest
and manage all monies deposited by the Participant into TexPool.
Section 2.03 Accounts and Sub-accounts. The Trust Company shall establish and maintain separate account(s)
(the"Aceounts")for each ParticipantinTexPoolinaccordancewithadulyexecutedL.etterofInstructions. SeparateSub-accounts
may also be established within each Account (the "Sub-accounts"), as so directed from time to time in a Letter of Instructions .
An Authorized Representative of the Participant may also eliminate inactive Accounts and Sub-accounts from time to time
if the request is confirmed by a duly executed Letter of Instructions.
ARTICLE III.
FUND TRANSFERS IN TEXPOOL
Section3.Ol.MethtxlofTransferofFunds. All fundtransfers,bothdepositsandwithdrawals,shallbebyACHorbyWire
Transfers. Presentation of physical itemsfordepositand/orwithdrawalwillnotbeaccepted. The Participant agrees to effect ACH
deposits and withdrawals by contacting TexPool's Data Collection Center using atouch-tone telephone, a computer with a modem
or by rotary telephone talking to a live operator.
Section 3.02. ACH Fund Transfers. In order to remit [ands to TexPool, the Participant may initiate an ACH withdrawal
from its designated financial institution account by reporting remittance information via atoll-free telephone call to the Data
Collection Center. The Data Collection Center will immediately notify the Trust Company and the Trust Company will credit the
Participant's account with available funds in the amount of the remittance on the next business day. All deposit and withdrawal
instructions for ACH fund transfers must be received by the Data Collection Center before 12:30 p.m. (Austin time) one day prior
to funds transfer on settlement day.' In addition the Participant may also initiate ACH credits to TexPool which must be reported
to the Data Collection Center before 12:30 p.m. (Austin time) one day prior to funds transfer on settlement day.
The Texas State Treasury's Rapid Deposit Program Division shalt be responsible for establishing and maintaining the ACH
system and Data Collection Center on behalf of all Participants.
Section 3.03. Wire Transfers. Notification of all Wire Transfers, including both deposits and withdrawals, must be made
by 10:00 a.m. on the same business day, provided the Participant immediately notifies the Authorized Representative of the Trust
Company by telephone call or by facsimile machine ("fax"). For all Wire Transfer withdrawal requests the Trust Company's
Authorized Representative will perform acall-back verification and authorization prior to effectuating any withdrawal.
Section 3.04. Deposits. Upon receipt by the Trust Company's Authorized Representative of notification by the Data
Collection Center or receiptofanyWireTransfer,theTrustCompanywillcreditParticipant'saccountwithavailablefunds. Same
daydeposits pursuant to Section 3.03 hereof may only be effectuated by Wire Transfer. All deposits will be accepted regardless of
the day and time it is received by the Trust Company.
Section 3.05. Late Deposits. Becauseof the fluctuation in investment markets and its effect on investment decisions, late
deposits may not be includable in that day's TexPool assets. As used in the section, the term "late deposits" shall mean: (a) Wire
Transfers other than those described in Section 3.03 and (b) All other deposits received after 12:30 p.m. (Austin time). The
Participant agrees that late deposits may be segregated into an independent and separate investment overnight only. The
Participant hereby acknowledges that frequently late day investments are made a[ a lower interest rate yield, which would diminish
the remainder of the TexPool Participants' investment return income. The Participant agrees that the Trust Company shall use
its best efforts to purchase the highest interest rate yielding investment, however a decision to segregate a late deposit for purchase
of a separate lower yielding investment instrument will be made at the discretion of the Trust Company's Authorized Represen-
tative. In the event the Trust Company determines to invest a late deposit in a segregated lower yielding investment instrument,
only theaffecled Participant's account will receive theappropriate incomeearnings associated with the late deposited investment
on thenext business day. Thefunds will be merged into TexPoolon the next business day. For all deposits received after 12:30 p.m.,
noon (Austin time), and in the event there is no suitable late day investment for a late deposit, the funds will be held in the
Participant's account as a cash (non-interest bearing) deposit in the Trust Company's Federal Reserve Bank of Dallas account in
order to maintain complete security of the funds. The funds will be merged into TexPool on the next business day.
Section 3.06. Withdrawals. To withdraw funds by Wire Transfer from TexPool, an Authorized Representative of [he
Participantshall issue instructions not later than 10:00 a.m. (Austin time) on the day the funds are to be withdrawn, specifying the
Account or Sub-account and the amount of money to be wired or transferred in immediately available funds to the Participant's
designated local bank account. Such instructions may be oral, provided however that a written Letter of Instruction signed by an
Authorized Representative of the Participant is sent to the Trust Company within 24 hours of the oral instructions. All oral
instructions shall besubject to acall-back verification as described in Section 3.03. Upon receipt ofa withdrawal request theTrust
Company will verify that the Participant's account balance is sufficient to honor the request, and if so, the Trust Company will
transfer the requested funds to the Participant's designated local bank account in next day available funds by ACH, unless otherwise
so instructed by the Participant. Instructions from the Participant to withdraw the total balance in the Account(s) orSub-account(s)
3
may include any interesrearnings credited to the Account(s) or Sub-account(s) through the day of the withdrawal In all other
circumstances accrued interest shall be credited daily and paid at the end of the month.
Section3.07.LateWithdrawals. Samedaywi[hdrawalrequestsmustbereceivedbyl0:OOa.m.andmayonlybeeffec[uated
by Wire Transfer. A late withdrawal request may be subjected to and conditioned upon the ability of the Trust Company to fund
the withdrawal request. However, the Trust Company agrees to use i[s best efforts to honor such late withdrawal requests and to
notify the Participant immediately with information concerning disposition of the late withdrawal request.
Section 3.08. Separation of Accounts. TexPool was created to establish a fund that may be commingled for purposes of
common investment and operational efficienry. However, each Participant shall have a separate Account(s) and Sub-account(s)
on the books and records of TexPool which shall be maintained by the Trust Company.
ARTICLE IV.
INVESTMENTS AND DUTIES
Section 4.01. Duties. The TreasureractingbyandthroughtheTrustCompanyherebyagreestomanageTexPoolwiththe
same degree of care and assuming the same duty to the Participant that is applicable to management of funds inside the Treasury.
TexPool is hereby established as a trust fund, segregated from all other trustors, invcsuncnts, and activities of the Trust Company.
Section 4.02. Investments. All monies held in TexPool shall be invested and reinvested by the Authorized Representa-
tivesofthe Trust CompanyonlyinAuthorizedlnvestments. TexPool'savailablefundsthatareuninvestedshallbeheldattheTrust
Company's account at the Federal Reserve Bank of Dallas. All investments of both assets and collateral will be in the possession
of the Trust Company and held in its book-entry safekeeping acwunt at the Fcdcral Rcscrve Bank of Dallas.
Section 4.03. Failed Investment Transactions. In the extraordinary event that a purchase of securities results in a failed
settlement, any resulting uninvested funds shall remain in the Trust Company's Federal Reserve Bank of Dallas account. If an
alternative investment ran be secured after the failure of the trade to settle, TexPool will receive all the income earnings, including
but not limited to, compensation from the purchaser failing in the trade and the interest income from the alternative investment.
Section 4.04. Investment Famines Allocation. All interest earnings in TexPool will be valued daily and credited to the
Participant'sAccount(s)andSub-account(s)monthly,onaprorataallocationbasis. Alllosscs,ifany,resultingfromtheinvestment
of monies in TexPool shall also be allocated on a pro rata allocation basis.
Section 4.05. Specific Investment Requirements. Because TexPool is designed to give each Participant immediate access
to their funds, the dollar weighted average maturity of the investments in TexPool will not exceed 120 days.
All collateral securing repurchase agreements will be repriced daily and maintained at a minimum of 100% coverage of the
originally invested principal amount, which shall be reviewed from time to time by the TexPool Advisory Board as part of the
Investment Policy.
Section 4.06. TexPool Advisory Board. There hasbeencreatedtheTexPooladvisoryboard(the"Advisory Board")which
consists of at least 10 members, each appointed by the Treasurer for a staggered term of three (3) years. The Advisory Board shall
review and approve an investment policy for TexPool. The Advisory Board shall also have responsibility for any modification or
other amendments of the fee structure which is more fully described in Section 5.01 herein. The Participant by execution of the
Participation Agreement hereby agrees to be bound by all policies, fee schedules, and other rules which may be adopted by the Ad-
visoryBoard.
Section 4.07. Liability. Neither the Treasurer, the Trust Company, any Treasury employees, nor any of the members of
the Advisory Board shall be held liable for any action or omission to act on behalf of the Treasury, Treasury employees, or the
Participants uNess caused by gross negligence or willful misconduct.
ARTICLE V.
EXPENSES AND REPORTS
Section 5.01. Fees and Expenses. Attached hereto is a schedule of fees for basic and special services. The Participant agrees
to pay to the Trust Company an amount set forth in the fee schedule which shall be sufficient to reimburse the Trust Company for
its actual costs of performing its duties under this Participation Agreement. Participant agrees that alt fees shall be directly and
automaticallyassessedandchargedagainstthePar[icipant'sAccountsandSub-accounts. The basic servicesfeeshallbecalculated
as a reduction in the daily income earned, thus only the net income shall be credited to the Participant's account. Fees for special
4
services shall be charged [o each Participant's account as they are incurred or performed. A schedule of fees shall be sent annually
to the Participant. Fees shall only be changed upon the approval of the majority of TexPool's Advisory Board. Each Participant
will be notified thirty (30) days prior to the effective date of any change in the fee schedules.
Section 5.02. Penalties for Losses. All actual costs, including but not limited to, losses of investment income for TexPool
associated with ACH returns or by failure to timely transmit a Wire Transfer for deposit will be charged against the Participant's
Account(s) and Sub-account(s) unless such failure was beyond the control of the Participant. TheTrust Companywill make every
effort to mitigateany adverse cost being incurred by the Participant. The Trust Company shall only recover the actual costs incurred
in the event of any loss.
Section 5.03. Reports. The Trust Companyshall submit a written report to the Participant which shall include a detailed
listing of all transactions occurring in [he Participant's Account(s) and Sutr-account(s) for the previous month, within the first five
(5)businessdaysofthenextsucceedingmonth. SuchreportwillindicatethebalanceremainingintheParticipant'sAccoun[(s)and
Sub-account(s), the daily and monthly yields of interest earned, all deposits and withdrawals, and all expenses, including the basic
services fee and any special fees assessed, in accordance with generally accepted accounting principles. Additionally, the Trust
Company will maintain copies of the Participant's Account(s) and Sub-account(s) reports in physical or computer form for a
minimum of three prior fiscal years. This information will be available to assist the Participant in any special research or report
request. CopiesofallParticipants'reportsshallbeavailableforpublicexaminationattheTrustCompany'sofficesattheTreasury.
These reports and summary information shall be presented to the Advisory Board. All records shall be available for inspection at
all reasonable hours of the business day and under reasonable wnditions. The Trust Company will altcmpt to keep confidential
all historical account information and current balances of the Participant. However, the Participant acknowledges that the Trust
Company is subject to the Open Records Act, Vernon's Ann. Tex. Civ. Slat. art. 6252-17a, as amended.
ARTICLE VI.
SPECIFIC PARTICIPANT INFORMATION
Section 6.01. Account Number and Password. Each Participant shall be assigned a unique identifying number, and each
Authorized Representative of the Participant shall be assigned a unique identifying password. Additionally, each Account and Sub-
account will be assigned a unique number. The Participant hereby agrees that the unique passwords and account numbers are
required to implement any deposit or withdrawal to the Participant's Account(s) or Sub-account(s). The Trust Company agrees
that such account numbers and passwords shall be maintained by the Trust Company and the Trust Company shall decline to
disclose said unique identifying information except with the consent of the Participant or the Participant's Authorized Represen-
tative.
Section 6.02. Bank Account. The Participant's local bank account and information is set forth on the attached routing
form. AnyamendmentorchangetotheabovedescribedinformationmustbesubmittedinwritingtotheTrustCompanyandmust
include clear instructions for effecting future deposit and withdrawal transactions. The Trust Company will implement these
changes within 15 business days of receiving the notification. TheTrust Companywill forward this informs lion to the Rapid Deposit
Program Division of the Treasury.
Section 6.03. Notices. Any notices, Letters of Instructions, or other information required or permitted to be given
hereunder shall be given in writing and shall be deemed duly given when mailed by registered or certified mail, postage prepaid,
addressed or tclefaxcd as follows:
To the Participant:
Name of Participant
Contact Person-
Address
Telephone No.
TeleFax No.
To the Trust Company:
Richard Scott, Director
Trust Division
Texas State Treasury Department
P.O. Box 12608, Capitol Station
Austin, Texas 78711
Telephone No. (512) 440-4744 or call Toll Free: 1-800-234-LGIP
Telefax No. (512) 440-4749
Section 6.04. Taxpayer Identification Number. The Participant's taxpayer identification number assigned by the Internal
Revenue Service is: .The Participant hereby agrees to notify the Trust Company of any change
affecting this Taxpayer Identification Number and agrees that unless and until so notified, the Trust Company shall be entitled to
rely on same in providing any and all reports or other information necessary or required by the Federal tax laws as amended from
time to time.
ARTICLE VII.
MISCELLANEOUS
Section 7.01. Severability. If any provision of this Participation Agreement shall be held or deemed to be in fact illegal,
inoperative or unenforceable, the same shall not affect any other provision or provisions herein contained or render the same
invalid, inoperative or unenforceable to any extent whatsoever.
Section 7.02. LimitationofRiehts. Withtheexceptionoftherightshereinexpresslyrnnferred,nothinginortobeimplied
from this Participation Agreement is intended or shall be rnnstrued to give any person other than the parties hereto any legal or
equitable right, remedyorclaim underor in respect to this Participation Agreement or any of the rnvenants, conditions or provisions
herein contained; this Participation Agreement and all of the rnvenants, conditions and provisions hereof being intended to be and
being for the sole and exclusive benefits to the parties hereto as herein provided. The Participant further agrees that the Treasurer's
responsibilities hereunder are limited to the management and investment of TexPool and the providing of reports and information
herein required; neither the Treasurer nor the Trust Company shall be liable Cor any losses from investments and transfers made
in accordance with the procedures set forth in this Participation Agreement.
Section 7.03. Execution of Counterparts. This Participation Agreement may be simultaneously executed in several
separate counterparts, each of which shall be an original and all of which shall rnnstitute but one and the same instrument.
Section 7.04. Applicable Law. This Participation Agreement shall be governed by and construed in acrnrdance with the
laws of the State of Texas and is wholly performable in Travis County, Texas.
Section 7.05. Captions. The pptions or headings in this Participation Agreement are for convenience only and in noway
define, limit, or describe the scope or intent of any provisions, articles, or sections of this Participation Agreement.
Section 7.06. Amendments. The Participant and the Trust Company may supplement, amend or modify this Participation
Agreement only if evidenced in a writing signed by both parties.
Section 7.07. Termination. This Agreement maybe terminated by either party hereto, with or without cause, by tendering
30 days' prior written notice in the manner set forth in Section 6.03 hereof.
Section 7.08. Term. The continuance of this Participation Agreement is subject to and dependent upon appropriation
of the necessary funds by the Texas Legislature. Otherwise, unless terminated in accordance with Section 7.07, it shall be
automatiplly renewed on each anniversary date hereof.
In Witness Whereof the parties hereto have posed this Participation Agreement to be executed in multiple counterparts
as of the date first set forth above.
PARTICIPANT TEXAS TREASURY SAFEKEEPING TRUST COMPANY
By: By:
Title: Title: