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House Bill 573 |
House Author: Flynn |
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Effective: 6-18-05 |
Senate Sponsor: Duncan |
For a bank to secure a deposit of public funds, the Government Code requires a collateral deposit in the form of an eligible security whose value is at least equal to the amount of the public funds to be secured, except that the value of an eligible security described by Section 45.201(4)(D) to secure a deposit of school district funds must be at least 110 percent of the amount of the funds to be deposited. House Bill 573 amends that Education Code provision to restrict those approved securities requiring the higher collateral weighting under Subdivision (4)(D) to reducing principal balance securities only, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or of the United States.