Bill clarifying qualified securities for public funds approved

A bill that clarifies the types of financial instruments authorized as securities for public funds under state law was given final approval Feb. 11.

Introduced by Grand Island Sen. Mike Gloor, LB155 clarifies that both mortgage-backed securities and collateralized mortgage obligations qualify to be pledged for purposes of securing public funds as mortgage-backed obligations.

The bill also allows the pledging for public funds requirements to be satisfied by letters of credit issued by any Federal Home Loan Bank.

The bill passed 48-0.