Section 53656 Of Article 2. Deposit Of Funds From California Government Code >> Division 2. >> Title 5. >> Part 1. >> Chapter 4. >> Article 2.
53656
. (a) At the time the treasurer enters into a contract with
the depository pursuant to Section 53649, he or she shall authorize
the agent of depository designated by the depository, but including
the trust department of the depository only when acceptable to both
the treasurer and the depository, to hold securities of the
depository in accordance with this article to secure the deposit of
the local agency.
(b) Only those trust companies and trust departments, or the
Federal Home Loan Bank of San Francisco, which have been authorized
by the administrator pursuant to Section 53657 shall be authorized by
treasurers to act as agents of depository.
(c) The securities are subject to order of the depository in
accordance with Section 53654 except when the provisions of
subdivision (i) of Section 53661 and Section 53665 are in effect.
(d) An agent of depository shall not release any security held to
secure a local agency deposit in a depository unless the
administrator issues an order authorizing the release where either of
the following occurs:
(1) A state or federal regulatory agency has taken possession of
the depository.
(2) A conservator, receiver, or other legal custodian has been
appointed for the depository.