By Counts H.B. No. 1722
76R6925 GCH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to investment of money in the veterans' land fund.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 161.173(a), Natural Resources Code, is
1-5 amended to read as follows:
1-6 (a) Money in the fund that is not immediately committed to
1-7 paying principal of and interest on the bonds, to the purchase of
1-8 land, or to the payment of expenses as provided in this chapter may
1-9 be invested in:
1-10 (1) direct security repurchase agreements and reverse
1-11 security repurchase agreements made with state or national banks
1-12 domiciled in this state or with primary dealers as approved by the
1-13 Federal Reserve System;
1-14 (2) direct obligations of or obligations the principal
1-15 and interest of which are guaranteed by the United States;
1-16 (3) direct obligations of or obligations guaranteed by
1-17 the Federal Home Loan Banks, the Federal National Mortgage
1-18 Association, the Federal Farm Credit System, the Student Loan
1-19 Marketing Association, the Federal Home Loan Mortgage Corporation,
1-20 or a successor organization to one of those organizations;
1-21 (4) bankers' acceptances that:
1-22 (A) are eligible for purchase by members of the
1-23 Federal Reserve System;
1-24 (B) do not exceed 270 days to maturity; and
2-1 (C) are issued by a bank that has received the
2-2 highest short-term credit rating by a nationally recognized
2-3 investment rating firm;
2-4 (5) commercial paper that:
2-5 (A) does not exceed 270 days to maturity; and
2-6 (B) has received the highest short-term credit
2-7 rating by a nationally recognized investment rating firm;
2-8 (6) contracts written by the board in which the board
2-9 grants the purchaser the right to purchase securities in the
2-10 board's marketable securities portfolio at a specified price over a
2-11 specified period and for which the board is paid a fee and
2-12 specifically prohibits naked-option or uncovered option trading;
2-13 (7) obligations of a state or an agency, county, city,
2-14 or other political subdivision of a state, including revenue bonds
2-15 issued under Chapter 164, and mutual funds composed of these
2-16 obligations;
2-17 (8) an investment instrument, obligation, or other
2-18 evidence of indebtedness the payment of which is directly or
2-19 indirectly guaranteed by the full faith and credit of the United
2-20 States;
2-21 (9) an investment, account, depository receipt, or
2-22 deposit that is fully:
2-23 (A) insured by the Federal Deposit Insurance
2-24 Corporation, the Federal Savings and Loan Insurance Corporation, or
2-25 a successor organization to one of those organizations; or
2-26 (B) secured by securities described by
2-27 Subdivision (2), (3), or (8) of this subsection;
3-1 (10) a collateralized mortgage obligation fully
3-2 secured by securities or mortgages issued or guaranteed by the
3-3 Government National Mortgage Association (GNMA) or any entity
3-4 described by Subdivision (3) of this subsection;
3-5 (11) a security or evidence of indebtedness issued by
3-6 the Farm Credit System Financial Assistance Corporation, the
3-7 Private Export Funding Corporation, or the Export-Import Bank; and
3-8 (12) any other investment authorized for investment of
3-9 state funds by the comptroller under Section 404.024, Government
3-10 Code.
3-11 SECTION 2. The importance of this legislation and the
3-12 crowded condition of the calendars in both houses create an
3-13 emergency and an imperative public necessity that the
3-14 constitutional rule requiring bills to be read on three several
3-15 days in each house be suspended, and this rule is hereby suspended,
3-16 and that this Act take effect and be in force from and after its
3-17 passage, and it is so enacted.