§ 49. Authority obligations as legal investments and legal security\nfor deposits by public officers. The state, its subdivisions,\nmunicipalities, and all other public bodies, and all public officers,\nall banks, bankers, trust companies, savings banks and institutions,\nbuilding and loan associations, saving and loan associations, investment\ncompanies and other persons carrying on a banking business, all\ninsurance companies, insurance associations and other persons carrying\non an insurance business, and all executors, administrators, guardians,\ntrustees and other fiduciaries may legally invest funds belonging to\nthem or within their control in:
(a)any bonds, notes and other\nobligations of an authority when they are (1) secured by a pledge of the\nrevenues of a project, and add
Free access — add to your briefcase to read the full text and ask questions with AI
§ 49. Authority obligations as legal investments and legal security\nfor deposits by public officers. The state, its subdivisions,\nmunicipalities, and all other public bodies, and all public officers,\nall banks, bankers, trust companies, savings banks and institutions,\nbuilding and loan associations, saving and loan associations, investment\ncompanies and other persons carrying on a banking business, all\ninsurance companies, insurance associations and other persons carrying\non an insurance business, and all executors, administrators, guardians,\ntrustees and other fiduciaries may legally invest funds belonging to\nthem or within their control in: (a) any bonds, notes and other\nobligations of an authority when they are (1) secured by a pledge of the\nrevenues of a project, and additionally secured by a pledge of periodic\nsubsidies or of annual contributions to be paid to an authority by a\ngovernment, or (2) secured by a first mortgage lien not exceeding\nsixty-six and two-thirds per centum of the value of the property covered\nthereby, or (3) secured by an agreement between the authority and a\ngovernment pursuant to which the authority agrees to borrow from the\ngovernment, and the government agrees to lend to the authority prior to\nthe maturity of such bonds, notes or other obligations of the authority,\nmonies in an amount which (together with any other monies irrevocably\ncommitted to the payment of principal of or interest on such bonds,\nnotes or other obligations) will be sufficient to pay the principal of\nsuch bonds, notes or other obligations with interest thereon to\nmaturity, which monies under the terms of such agreement are required to\nbe used by the authority for the purpose of paying the principal of and\ninterest on such bonds, notes or other obligations at their maturity, or\n(4) guaranteed by a municipality as to principal and interest; (b) any\nnotes issued pursuant to and in conformity with the provisions of\nsubdivision two of section forty-one of this chapter under a contract\nwith the state containing a covenant for the payment of periodic\nsubsidies as provided in subdivision (b) of section seventy-six-a of\nthis chapter; or (c) any bonds, notes and other obligations issued by\nany public housing authority or agency in the United States or in the\ncommonwealth of Puerto Rico when such bonds, notes or other obligations\nare secured by a pledge of the revenues of the housing project or\nprojects for which the bonds, notes or other obligations are issued, and\nadditionally secured by a pledge of annual contributions to be paid by\nthe United States government or any agency thereof. Such bonds, notes\nand other obligations issued by an authority pursuant to this chapter\nare also hereby made securities which may be deposited with and shall be\nreceived by all public officers and bodies of this state and all\nmunicipalities, governments, and public corporations of this state, for\nany purpose for which the deposit of bonds or other obligations of this\nstate is now or may be hereafter authorized or required.\n