Bill Text: TX HB2928 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to including the obligations of Federal Home Loan Banks as authorized investments for a governmental entity and the requirements for certificates of deposit or share certificates held as authorized investments for a governmental entity.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2017-06-15 - Effective on 9/1/17 [HB2928 Detail]
Download: Texas-2017-HB2928-Enrolled.html
H.B. No. 2928 |
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relating to including the obligations of Federal Home Loan Banks as | ||
authorized investments for a governmental entity and the | ||
requirements for certificates of deposit or share certificates held | ||
as authorized investments for a governmental entity. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 2256.009(a), Government Code, is amended | ||
to read as follows: | ||
(a) Except as provided by Subsection (b), the following are | ||
authorized investments under this subchapter: | ||
(1) obligations, including letters of credit, of the | ||
United States or its agencies and instrumentalities, including the | ||
Federal Home Loan Banks; | ||
(2) direct obligations of this state or its agencies | ||
and instrumentalities; | ||
(3) collateralized mortgage obligations directly | ||
issued by a federal agency or instrumentality of the United States, | ||
the underlying security for which is guaranteed by an agency or | ||
instrumentality of the United States; | ||
(4) other obligations, the principal and interest of | ||
which are unconditionally guaranteed or insured by, or backed by | ||
the full faith and credit of, this state or the United States or | ||
their respective agencies and instrumentalities, including | ||
obligations that are fully guaranteed or insured by the Federal | ||
Deposit Insurance Corporation or by the explicit full faith and | ||
credit of the United States; | ||
(5) obligations of states, agencies, counties, | ||
cities, and other political subdivisions of any state rated as to | ||
investment quality by a nationally recognized investment rating | ||
firm not less than A or its equivalent; and | ||
(6) bonds issued, assumed, or guaranteed by the State | ||
of Israel. | ||
SECTION 2. Section 2256.010(a), Government Code, is amended | ||
to read as follows: | ||
(a) A certificate of deposit or share certificate is an | ||
authorized investment under this subchapter if the certificate is | ||
issued by a depository institution that has its main office or a | ||
branch office in this state and is: | ||
(1) guaranteed or insured by the Federal Deposit | ||
Insurance Corporation or its successor or the National Credit Union | ||
Share Insurance Fund or its successor; | ||
(2) secured by obligations that are described by | ||
Section 2256.009(a), including mortgage backed securities directly | ||
issued by a federal agency or instrumentality that have a market | ||
value of not less than the principal amount of the certificates, but | ||
excluding those mortgage backed securities of the nature described | ||
by Section 2256.009(b); or | ||
(3) secured in accordance with Chapter 2257 or in any | ||
other manner and amount provided by law for deposits of the | ||
investing entity. | ||
SECTION 3. The changes in law made by this Act apply to an | ||
authorized investment of public funds governed by Chapter 2256, | ||
Government Code, as amended by this Act, made on or after the | ||
effective date of this Act. An authorized investment of public | ||
funds made before the effective date of this Act is subject to the | ||
law in effect on the date the investment was made, and the former | ||
law is continued in effect for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2017. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2928 was passed by the House on April | ||
20, 2017, by the following vote: Yeas 144, Nays 0, 2 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2928 was passed by the Senate on May | ||
19, 2017, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |