Rhode Island General Laws Title 45. Towns and Cities § 45-27-21. Bonds as legal investments

(a) Notwithstanding any restrictions on investments contained in any laws of this state, the state and all public officers, municipal corporations, political subdivisions, and public bodies, all banks, bankers, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, moneys or other funds, belonging to them or within their control, in any bonds or other obligations issued by a housing authority pursuant to this chapter, or issued by any public housing authority or agency in the United States, when bonds or other obligations are secured by a pledge of annual contributions to be paid by the United States government or any of its agencies, and the bonds and other obligations are authorized security for all public deposits.

(b) It is the purpose of this chapter to authorize any persons, firms, corporations, associations, political subdivisions, bodies, and officers, public or private, to use any funds owned or controlled by them, including, but not limited to, sinking, insurance, investment, retirement, compensation, pension, and trust funds, and funds held on deposit, for the purchase of bonds or other obligations; provided, that nothing contained in this chapter shall be construed as relieving any person, firm, or corporation from any duty of exercising reasonable care in selecting securities.