CA AB2481

Amends Government Code Section 16522 to expand eligible securities that banks may deposit with the State Treasurer to secure state deposits, changing from letters of credit issued only by the Federal Home Loan Bank of San Francisco to letters of credit issued by any Federal Home Loan Bank.

Specifies that Federal Home Loan Bank letters of credit must be in a form prescribed by the Treasurer, be clean and irrevocable, with the Treasurer as beneficiary, and allow the Treasurer to draw upon them in the event of bank failure or refusal to permit fund withdrawals.

Amends Government Code Section 53651 to similarly expand eligible securities for local agency deposits to include letters of credit from any Federal Home Loan Bank (rather than only the San Francisco bank), subject to compliance with Section 53651.6.