§ 15-10-114 — When investment in bonds authorized; duty of care; other restrictions inapplicable

(a) The state or any officer thereof, any political
subdivision, any person carrying on a banking or insurance
business and any fiduciary may legally invest any funds
belonging to them or within their control in any bonds issued
pursuant to this chapter or issued by any public housing
authority or agency in the United States, any of its
territories, the District of Columbia, Puerto Rico, Guam or the
Virgin Islands, when the bonds are secured by:
(i) A pledge of annual contributions or other
financial assistance to be paid by the United States government
or any agency thereof; or
(ii) An agreement between the United States
government or any agency thereof and the municipality, county,
public housing authority or agency in which the United States
government or any agency thereof agrees to lend to the
municipality, county, public housing authority or agency, prior
to the maturity of the bonds, monies which:
(A) When together with any other monies
irrevocably committed to the payment of interest on the bonds
will suffice to pay the principal of the bonds or other
obligations with interest to maturity;
(B) Under the terms of the agreement are
required to be used for this purpose.
(b) The bonds specified in subsection (a) of this section
are authorized security for all public deposits and are fully
negotiable in this state.
(c) Nothing contained in this section shall be construed
as relieving any person from any duty of exercising reasonable
care in selecting securities.
(d) The provisions of this section apply notwithstanding
any restrictions on investments contained in other laws.