78R8903 T

By:  Wentworth                                                    S.B. No. 1534



A BILL TO BE ENTITLED

AN ACT

relating to the authorization of securities lending for 
governmental entities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	CHAPTER 2256, SUBCHAPTER A, Government Code, is amended to 
revise the title of subsection 2256.0011 and to add add section (e).  
The revised title and section (e) to read as follows:
	Sec. 2256.011.  AUTHORIZED INVESTMENTS:  REPURCHASE 
AGREEMENTS AND SECURITIES LENDING PROGRAM
	(e)  Securities or investments purchased or held under the 
provisions of this Act may be loaned to securities dealers or 
financial institutions, provided the loan is collateralized by cash 
or securities having a market value of at least 100 percent of the 
market value of the securities loaned.