By: Jackson (Senate Sponsor - Carona) H.B. No. 2103
(In the Senate - Received from the House May 12, 2011;
May 12, 2011, read first time and referred to Committee on Business
and Commerce; May 18, 2011, reported favorably by the following
vote: Yeas 8, Nays 0; May 18, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 2257.002(4), Government Code, is amended
to read as follows:
(4) "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; [or]
(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. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
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