AB 2851

Bill Subjects

Abstract

Existing law requires the Treasurer to invest, or deposit in banks and savings and loan associations, specified state moneys designated as surplus and determined to be available for that purpose by the Pooled Money Investment Board. Existing law prescribes eligible securities for the investment of surplus moneys under these provisions, including bonds, notes, and warrants of this state and bonds or warrants of any county, city, or specified types of districts of this state. This bill would include, as a type of security that is eligible for the investment of surplus state funds, those bonds, notes, warrants, and other securities not in default that are the direct obligations of the government of a foreign country that the International Monetary Fund lists as industrialized and for which the full faith and credit of that country has been pledged for the payment of principal and interest, if specified requirements are met. Existing law, for purposes of a savings and loan association or credit union being eligible to receive deposits of state funds, specifies which securities may be received as security for demand and time deposits, and may be received as security, including, among others, bonds issued by the State of Israel. This bill would repeal the authorization for a security that may be received to be a bond issued by the State of Israel, and would instead include all those bonds, notes, warrants, and other securities not in default that are the direct obligations of the government of a foreign country that the International Monetary Fund lists as industrialized and for which the full faith and credit of that country has been pledged for the payment of principal and interest, if specified requirements are met.