| 1 | 1 | | By: Jackson (Senate Sponsor - Carona) H.B. No. 2103 |
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| 2 | 2 | | (In the Senate - Received from the House May 12, 2011; |
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| 3 | 3 | | May 12, 2011, read first time and referred to Committee on Business |
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| 4 | 4 | | and Commerce; May 18, 2011, reported favorably by the following |
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| 5 | 5 | | vote: Yeas 8, Nays 0; May 18, 2011, sent to printer.) |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | relating to the consideration of a letter of credit issued by a |
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| 11 | 11 | | federal home loan bank as an eligible security for collateral to |
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| 12 | 12 | | secure public funds. |
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| 13 | 13 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 14 | | SECTION 1. Section 2257.002(4), Government Code, is amended |
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| 15 | 15 | | to read as follows: |
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| 16 | 16 | | (4) "Eligible security" means: |
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| 17 | 17 | | (A) a surety bond; |
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| 18 | 18 | | (B) an investment security; |
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| 19 | 19 | | (C) an ownership or beneficial interest in an |
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| 20 | 20 | | investment security, other than an option contract to purchase or |
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| 21 | 21 | | sell an investment security; |
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| 22 | 22 | | (D) a fixed-rate collateralized mortgage |
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| 23 | 23 | | obligation that has an expected weighted average life of 10 years or |
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| 24 | 24 | | less and does not constitute a high-risk mortgage security; [or] |
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| 25 | 25 | | (E) a floating-rate collateralized mortgage |
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| 26 | 26 | | obligation that does not constitute a high-risk mortgage security; |
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| 27 | 27 | | or |
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| 28 | 28 | | (F) a letter of credit issued by a federal home |
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| 29 | 29 | | loan bank. |
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| 30 | 30 | | SECTION 2. This Act takes effect immediately if it receives |
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| 31 | 31 | | a vote of two-thirds of all the members elected to each house, as |
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| 32 | 32 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 33 | 33 | | Act does not receive the vote necessary for immediate effect, this |
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| 34 | 34 | | Act takes effect September 1, 2011. |
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| 35 | 35 | | * * * * * |
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