BILL ANALYSIS

Senate Research Center	H.B. 2103
82R9816 JJT-F	By: Jackson, Jim (Carona)
	Business & Commerce
	5/14/2011
	Engrossed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

H.B. 2103 amends current law relating to the consideration of a letter of credit issued by a federal home loan bank as an eligible security for collateral to secure public funds.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 2257.002(4), Government Code, as follows:

(4)  Provides that "eligible security" means:

(A)  a surety bond;

(B)  an investment security;

(C)  an ownership or beneficial interest in an investment security, other than an option contract to purchase or sell an investment security;

(D)  a fixed-rate collateralized mortgage obligation that has an expected weighted average life of 10 years or less and does not constitute a high-risk mortgage security;

(E)  a floating-rate collateralized mortgage obligation that does not constitute a high-risk mortgage security; or

(F)  a letter of credit issued by a federal home loan bank.

SECTION 2.  Effective date:  upon passage or September 1, 2011.