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Question: Perhaps you know who we might talk to about receiving state of Texas deposits. Our President wanted me to check to see if the state of Texas offered more deposits to banks that were located in lower economic areas and/or underserved markets. I had not heard of such a program. I thought I would start with the experts at IBAT to see if you guys had heard of such a program.
Answer: Although you flattered me with the title of expert, I can't take credit for this answer. I received it from a generous contact I have at the Texas Comptroller of Public Accounts.
State deposits are placed in state approved depositories through a monthly bid process, so all depositories have an equal chance to secure deposits.
The state does not set aside funds for banks located in lower economic areas; however, by state law a bank cannot be approved by the Comptroller to accept state funds if its Community Reinvestment Act rating is below “outstanding” or “satisfactory”.
Further information can be found at the following links:
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