We're an out of state bank that offers a relatively small number of savings accounts to Texas customers in conjunction with a marketing firm.
Comes the following concern: do our savings accounts qualify as "securities" for purposes of Texas Securities Act? Therefore, could the marketing firm be treated as an unregistered "dealer" in such securities?
Seems impossible, but stranger things have happened. Anyone cross this bridge before?

A deposit account in a Federally insured financial institution is not a security.

However, the marketing firm would most likely be considered a deposit broker and the deposits would be considered brokered deposits for call reporting purposes.

Thanks for the prompt response.
Has Texas acknowledged that "A deposit account in a Federally insured financial institution is not a security?"

Have you read the definition of security in the Act? Tell me how it would be included would be my question to you. Where in the world did you get such an idea?

New counsel here raised it as a "concern" based on the following, taken from a Texas State Securities Board letter dated 5/5/2004:

As an initial matter, you have opined that CDs are not securities for the purposes of the Texas Securities Act ("Act"). You cite Marine Bank v. Weaver, 455 U.S. 551 (1982) in support of your position. We are not aware of any Texas case embracing the holding of Marine Bank for purposes of the Act. Moreover, Section 5.L of the Act and Board Rule 109.17 contain carefully crafted exemptions from [*6] the registration requirements for the securities of certain finan-cial institutions under controlled and limited circumstances

I guess I am really confused. A normal certificate of deposit or other deposit account is not a security of the bank. It is not a debt obligation or an equity investment. I would have to read this whole letter to even understand the context from which this paragraph was pulled. Also, you being an out of state bank would have no impact on any such determination.

maybe its simply a matter of someone needing to increase billable hours...sorry for being so cynical....