July 7, 19%
Honorable Jesse Jsmea opinioa No. ww-470
State Treasurer
Capitol Station Re: Whether cert@n securities
Austin, Texas are eligible 'as collateral
for Stati.de&oeits.
Dear Sirs
Your letter requests our opinion:
I . . . u'to .xðer obligations at
the followlug types are eltgible under
the Depoaitoq Laws, or shy Special ~StrC-
utes, to be accepted by the State~DepHi-
tory Board ro~collateral fbr Stata::de
po*ito~r
1. Consolidated BQqdmqf ,Fed+al
HomeLoan Banks. These bonds
are the joint'and eeveral .ob-
ligation6 of,the Federal Home
Loan Banks.
2. Federal National mortgage As-
sociation Debentures.
'3. lkderal ~FarmLoan IWnds - The
twelve lw banks are jointly
and severally liable for con-
solidated tarm loaa~bo~~s.
4. Consolidated Debentures of Banks
for Cooperatives. ,:.: I
5. Federal Intermediate Credit Bsnk
Bonds. These are consolidated
Honorable Jesse James, page 2 (~~-470)
collateral trust debentures and
are the joint and several obli-
gations of the twelve Federal
Intermediate Credit Banks.
If your office should rule that any
oc :all,of the...abovetype obl:igations are
eligible as collateral, please advise:u&-.
:. what collateral worth the State TrBeD..
shall uee for such obligations.*
Alrticle 2529, V.C.S., prescribes the securities
which may be accepted by the State Depository Do@ ee+l-
lateral for deposit of State funds. This article is a
special act relating:~~ci,fical~y,rto statedepositories.~
We have also considered Jhethe,r.Articles 842 and
~842a, V.C.&, may apply in.~dete'rm&aiag~what'a~ities are
acceptable .as collateral for state ,deposits. .The wording
of these ~~:~strl~tes~~with.referen~: to *he types of securi-
ties therein~meutioned~as being eligible ,for iQpestment pur-
poses is practically the same. Their wordiagzl:withreference
to the types of securities each lists as being eligible as
"security for publ.ic'depositsm is identical.
j:'_! ,'
The particular %+ordingof