Sec. 2256.012. AUTHORIZED INVESTMENTS: BANKER'S ACCEPTANCES
A bankers' acceptance is an authorized investment under this subchapter if the bankers' acceptance:
- (1) has a stated maturity of 270 days or fewer from the date of its issuance;
- (2) will be, in accordance with its terms, liquidated in full at maturity;
- (3) is eligible for collateral for borrowing from a Federal Reserve Bank; and
- (4) is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency.
Added by Acts 1993, 73rd Leg., R.S., Ch. 268 (S.B. 248), Sec. 1, eff. September 1, 1993.
Acts 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995.