Bills › 89th General Assembly
Relating to life insurance company or association cash reinvestments in repurchase agreements collateralized by securities, and including applicability provisions
Sponsored by the Senate Commerce Committee
Topics:Business & economy
Where it is now
- Done: IntroducedJanuary 25, 2021
- Done: SubcommitteeJanuary 26, 2021
- Done: Senate committeeFebruary 10, 2021
- Done: Passes the SenateApril 7, 202144–0
- Skipped: House committeeSkipped
- Done: Passes the HouseFebruary 2, 2021
- Done: To the GovernorApril 30, 2021
- Done: Signed into lawApril 30, 2021
HF 236 became law → The same legislation passed as HF 236, so this version was set aside. Go to HF 236 What’s a funnel?
What’s in it
AI summary Life insurance companies and associations would be allowed to reinvest their cash using different types of government-backed agreements. Currently, the rules only allow them to use agreements backed by securities that mature in less than 270 days. This change would let them use securities that take 270 days or longer to mature.1
Read the official explanation
This bill allows life insurance companies and associations to reinvest cash or cash equivalent collateral for loans from securities held in their legal reserves in repurchase agreements collateralized by securities in United States government obligations maturing in 270 days or more. Under current law, all securities that collateralize repurchase agreements must mature in less than 270 days. “United States government obligations” is described in the bill. The bill applies to cash or cash equivalent reinvestments, by life insurance companies and associations, made in repurchase agreements collateralized by securities, on or after January 1, 2022.
Senate subcommittee
Named January 26, 2021 (as SSB 1086). On February 4, 2021 it recommended amendment and passage.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
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89th General Assembly