BILL ANALYSIS |
H.B. 2103 |
By: Jackson, Jim |
Ways & Means |
Committee Report (Unamended) |
BACKGROUND AND PURPOSE
There are concerns that current law does not adequately define "eligible security" for the purposes of establishing the forms of collateral required to secure a deposit of public funds under the Public Funds Collateral Act. H.B. 2103 seeks to address such concerns by expanding the definition of "eligible security" to include a letter of credit issued by a federal home loan bank.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
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ANALYSIS
H.B. 2103 amends the Government Code to redefine "eligible security," for purposes of establishing the forms of collateral required to secure a deposit of public funds under the Public Funds Collateral Act, to include a letter of credit issued by a federal loan bank.
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EFFECTIVE DATE
On passage, or, if the bill does not receive the necessary vote, September 1, 2011.
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