AB 2851 Summary

• Expands eligible securities for California state surplus fund investments to include bonds, notes, warrants, and other securities from foreign countries listed by the International Monetary Fund as industrialized, if rated investment grade or better and pledged with full faith and credit.

• Requires foreign country securities to be US dollar denominated with maximum maturity of five years, limited to 2 percent of total Pooled Money Investment assets, and subject to US and California court jurisdiction.

• Repeals authorization for bonds issued by the State of Israel as eligible collateral for state deposits at savings and loan associations and credit unions.

• Replaces Israel bond provision with same requirements for industrialized foreign country securities in both demand/time deposit security provisions and credit union deposit security provisions.

• Makes technical corrections to cross-references in the California Housing Finance Agency bond provisions, changing section citations from 41700 to 51350.