Opinion No.

Honorable Stan Schlueter Chairman Committee on Financial Institutions Texas House of Representatives P. O. Box 2910 Austin, Texas 78769

Re: Construction of House Bill No. 1208

Dear Representative Schlueter:

You have requested our opinion regarding the interpretation of House Bill No. 1208, passed by the Sixty-seventh Legislature and codified as article 2529b-1, V.T.C.S. You first ask:

May securities pledged to secure public deposits pursuant to House Bill No. 1208 be pledged to the full extent of market value?

Section 2 of article 2529b-1 clearly states, in pertinent part:

Investment securities or…