Opinion No.

Honorable Henry Wade District Attorney 601 Elm Street Dallas, Texas 75202

Re: Use of repurchase agreements for short term investment of county funds

Dear Mr. Wade:

You ask whether Dallas County may utilize `repurchase agreements' for short term investments of idle county funds. Your letter defines a repurchase agreement as `an agreement for the sale of a specified security to a county for a specified time at a specified rate of interest [with a provision that at] the maturity or due date, the seller automatically repurchases the specified security.'

An in-depth explanation of the nature of a…