(1) The bonds of the bank shall be legal investments in which all public officers
and public bodies of this state, its political subdivisions, all municipalities and
municipal subdivisions, all insurance companies and associations, trust companies,
savings banks and savings associations, including savings and loan associations, building
and loan associations, investment companies and other persons carrying on a banking
business, all administrators, guardians, executors, trustees and other fiduciaries,
and all other persons whatsoever who are now or may hereafter be authorized to invest
funds, including capital, in their control or belonging to them. The notes and bonds are also hereby made securities which may properly and legally
be deposited with and received by all public officers and bodies of the state or any
agency or political subdivisions of the state and all municipalities and public corporations
for any purpose for which the deposit of bonds or other obligations of the state is
now or may hereafter be authorized by law.
(2) Notwithstanding the provisions of any law to the contrary, to invest money of
the bank, including proceeds from the sale of any bonds, notes, any securities or
certificates of participation:
(a) In obligations of any municipality or the state or the United States of America;
(b) In obligations the principal and interest of which are guaranteed by the state
or the United States of America;
(c) In obligations of any corporation wholly owned by the United States of America;
(d) In obligations of any corporation sponsored by the United States of America which
is, or may become, eligible as collateral for advances to member banks as determined
by the Board of Governors of the Federal Reserve System;
(e) In obligations of insurance firms or other corporations whose investments are
rated “AA” or better by recognized rating companies;
(f) In certificates of deposit or time deposits of qualified depositories of the state
as approved by the State Depository Commission, secured in such manner, if any, as
the corporation shall determine;
(g) In contracts for the purchase and sale of obligations of the type specified in
items (a) through (e) above;
(h) In repurchase agreements secured by obligations specified in items (a) through
(e) above; and
(i) In money market funds, the assets of which are required to be invested in obligations
specified in items (a) through (f) above.
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