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A BILL TO BE ENTITLED
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AN ACT
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relating to the consideration of a letter of credit issued by a |
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federal home loan bank as an eligible security for collateral to |
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secure public funds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2257.002(4), Government Code, is amended |
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to read as follows: |
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(4) "Eligible security" means: |
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(A) a surety bond; |
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(B) an investment security; |
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(C) an ownership or beneficial interest in an |
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investment security, other than an option contract to purchase or |
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sell an investment security; |
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(D) a fixed-rate collateralized mortgage |
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obligation that has an expected weighted average life of 10 years or |
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less and does not constitute a high-risk mortgage security; [or] |
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(E) a floating-rate collateralized mortgage |
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obligation that does not constitute a high-risk mortgage security; |
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or |
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(F) a letter of credit issued by a federal home |
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loan bank. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |