§ 21-06-07 — Political subdivisions may invest funds

1. Counties, cities, school districts, park districts, water resource boards, and townships
in this state may invest moneys in their general fund, or balances in any special or
temporary fund, in:
a. Bonds, treasury bills and notes, or other securities that are a direct obligation of,
or an obligation insured or guaranteed by, the treasury of the United States, or its
agencies, instrumentalities, or organizations created by an act of Congress.

b. Securities sold under agreements to repurchase written by a financial institution
in which the underlying securities for the agreement to repurchase are of a type
listed above.
c. Certificates of deposit fully insured by the federal deposit insurance corporation or
by the state.
d. Certificates of deposit, savings deposits, or other deposits fully insured or
guaranteed by the federal deposit insurance corporation and placed for the
benefit of the public depositor by a public depository through an appropriate
deposit placement service as determined by the commissioner of financial
institutions.
e. State and local securities:
(1) Any security that is a general obligation of any state or local government
with taxing powers and is rated in the highest three categories by a
nationally recognized rating agency.
(2) An obligation of the state housing finance agency that is rated in the highest
two categories by a nationally recognized rating agency.
(3) Any security that is a general obligation of a school district and is rated in
the highest two categories by a nationally recognized rating agency.
(4) Obligations of this state and general obligations of its political subdivisions.
f. Commercial paper issued by a United States corporation rated in the highest
quality category by at least two nationally recognized rating agencies and
matures in two hundred seventy days or less.
2. Bonds, treasury bills and notes, or other securities so purchased must be taken into
consideration in making levies for the ensuing year, and when funds are needed for
current expenses, the governing board and authorities of such municipalities may
convert those obligations into cash.