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