77R11483 JJT-D
By Tillery H.B. No. 1968
Substitute the following for H.B. No. 1968:
By Woolley C.S.H.B. No. 1968
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to permissible investments, under the Public Funds
1-3 Investment Act, in certificates of deposit issued by certain
1-4 financial institutions.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 2256.010, Government Code, is amended to
1-7 read as follows:
1-8 Sec. 2256.010. AUTHORIZED INVESTMENTS: CERTIFICATES OF
1-9 DEPOSIT AND SHARE CERTIFICATES. A certificate of deposit is an
1-10 authorized investment under this subchapter if:
1-11 (1) the certificate is issued by a:
1-12 (A) [state or national] bank organized under the
1-13 laws of [domiciled in] this state, the laws of another state, or
1-14 federal law, that has its main office or a branch office in this
1-15 state;
1-16 (B) savings and loan association or [a] savings
1-17 bank organized under the laws of [domiciled in] this state, the
1-18 laws of another state, or federal law, that has its main office or
1-19 a branch office in this state; or
1-20 (C) [or a] state or federal credit union
1-21 domiciled in this state; and
1-22 (2) the certificate is:
1-23 (A) [(1)] guaranteed or insured by the Federal
1-24 Deposit Insurance Corporation or its successor or the National
2-1 Credit Union Share Insurance Fund or its successor;
2-2 (B) [(2)] secured by obligations that are
2-3 described by Section 2256.009(a), including mortgage backed
2-4 securities directly issued by a federal agency or instrumentality
2-5 that have a market value of not less than the principal amount of
2-6 the certificates, but excluding those mortgage backed securities of
2-7 the nature described by Section 2256.009(b); or
2-8 (C) [(3)] secured in any other manner and amount
2-9 provided by law for deposits of the investing entity.
2-10 SECTION 2. (a) This Act takes effect September 1, 2001.
2-11 (b) Section 2256.010, Government Code, as amended by this
2-12 Act, applies only to an investment under Chapter 2256, Government
2-13 Code (Public Funds Investment Act), made on or after the effective
2-14 date of this Act. An investment in a certificate of deposit under
2-15 Chapter 2256, Government Code, made before the effective date of
2-16 this Act is governed during the term of the certificate by Section
2-17 2256.010, Government Code, as it existed immediately before that
2-18 date, and the former law is continued in effect for that purpose.