| 1 | 1 | | 85R10446 MK-D |
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| 2 | 2 | | By: Stephenson H.B. No. 2648 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to including the obligations of Federal Home Loan Banks as |
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| 8 | 8 | | authorized investments for a governmental entity. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 2256.009(a), Government Code, is amended |
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| 11 | 11 | | to read as follows: |
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| 12 | 12 | | (a) Except as provided by Subsection (b), the following are |
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| 13 | 13 | | authorized investments under this subchapter: |
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| 14 | 14 | | (1) obligations, including letters of credit, of the |
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| 15 | 15 | | United States or its agencies and instrumentalities, including the |
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| 16 | 16 | | Federal Home Loan Banks; |
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| 17 | 17 | | (2) direct obligations of this state or its agencies |
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| 18 | 18 | | and instrumentalities; |
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| 19 | 19 | | (3) collateralized mortgage obligations directly |
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| 20 | 20 | | issued by a federal agency or instrumentality of the United States, |
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| 21 | 21 | | the underlying security for which is guaranteed by an agency or |
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| 22 | 22 | | instrumentality of the United States; |
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| 23 | 23 | | (4) other obligations, the principal and interest of |
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| 24 | 24 | | which are unconditionally guaranteed or insured by, or backed by |
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| 25 | 25 | | the full faith and credit of, this state or the United States or |
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| 26 | 26 | | their respective agencies and instrumentalities, including |
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| 27 | 27 | | obligations that are fully guaranteed or insured by the Federal |
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| 28 | 28 | | Deposit Insurance Corporation or by the explicit full faith and |
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| 29 | 29 | | credit of the United States; |
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| 30 | 30 | | (5) obligations of states, agencies, counties, |
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| 31 | 31 | | cities, and other political subdivisions of any state rated as to |
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| 32 | 32 | | investment quality by a nationally recognized investment rating |
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| 33 | 33 | | firm not less than A or its equivalent; and |
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| 34 | 34 | | (6) bonds issued, assumed, or guaranteed by the State |
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| 35 | 35 | | of Israel. |
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| 36 | 36 | | SECTION 2. This Act takes effect September 1, 2017. |
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