BILL ANALYSIS Senate Research Center H.B. 2103 82R9816 JJT-F By: Jackson, Jim (Carona) Business & Commerce 5/14/2011 Engrossed
BILL ANALYSIS
Senate Research Center H.B. 2103
82R9816 JJT-F By: Jackson, Jim (Carona)
Business & Commerce
5/14/2011
Engrossed
Senate Research Center
H.B. 2103
82R9816 JJT-F
By: Jackson, Jim (Carona)
Business & Commerce
5/14/2011
Engrossed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT H.B. 2103 amends current law relating to the consideration of a letter of credit issued by a federal home loan bank as an eligible security for collateral to secure public funds. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2257.002(4), Government Code, as follows: (4) Provides that "eligible security" means: (A) a surety bond; (B) an investment security; (C) an ownership or beneficial interest in an investment security, other than an option contract to purchase or sell an investment security; (D) a fixed-rate collateralized mortgage obligation that has an expected weighted average life of 10 years or less and does not constitute a high-risk mortgage security; (E) a floating-rate collateralized mortgage obligation that does not constitute a high-risk mortgage security; or (F) a letter of credit issued by a federal home loan bank. SECTION 2. Effective date: upon passage or September 1, 2011.
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
H.B. 2103 amends current law relating to the consideration of a letter of credit issued by a federal home loan bank as an eligible security for collateral to secure public funds.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 2257.002(4), Government Code, as follows:
(4) Provides that "eligible security" means:
(A) a surety bond;
(B) an investment security;
(C) an ownership or beneficial interest in an investment security, other than an option contract to purchase or sell an investment security;
(D) a fixed-rate collateralized mortgage obligation that has an expected weighted average life of 10 years or less and does not constitute a high-risk mortgage security;
(E) a floating-rate collateralized mortgage obligation that does not constitute a high-risk mortgage security; or
(F) a letter of credit issued by a federal home loan bank.
SECTION 2. Effective date: upon passage or September 1, 2011.