California Government Code

§ 20203

GOV § 20203 Effective Jan 1, 2018Div. 5 · Title 2 · Part 3 · Ch. 2 · Art. 6

Statute text

Notwithstanding any other law, the board may enter into security loan agreements with respect to securities in which the board is authorized by law to invest subject to all of the following conditions:

(a)The borrower shall provide the board with collateral in the form of cash, United States government debt securities, debt obligations issued by United States government agencies, and United States government-sponsored enterprises, marketable public equity securities, or marketable international government bonds, provided that the amount of collateral shall be at least 102 percent of the market value of the loaned securities or an amount consistent with market practice, whichever is greater.

(b)The board shall maintain policies and procedures designed to administer the loan agreements consistent with Section 17 of Article XVI of the California Constitution.

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Legislative history

Amended by Stats. 2017, Ch. 198, Sec. 1. (AB 679) Effective January 1, 2018.