§ 9-7-116 — Investment and management of funds

(a) The authority may invest funds in securities in which
state funds may be invested as provided by law or in savings
certificates of savings and loan associations and certificates
of deposit of banks to the extent they are fully insured by a
federal agency or are fully secured by a pledge of assets as
provided by law, sell securities it has purchased and deposit
securities in any financial institution. Funds deposited in
financial institutions shall be secured by obligations
authorized as permissible security for state investments. In
investing and managing its funds, the authority shall exercise
the judgment and care which persons of prudence, discretion and
intelligence would exercise under similar circumstances in
managing the permanent disposition of their funds, considering
the probable income and the probable safety of their capital.
(b) Notwithstanding the provisions of this section, the
authority may contract with the holders of any of its bonds, as
to the custody, collection, securing, investment and payment of
any monies of the authority, of any monies held in trust or
otherwise for the payment of bonds, and may carry out the
contract. Monies held in trust or otherwise for the payment of
bonds or in any way to secure bonds and deposits of monies may
be secured in the same manner as monies of the authority and all
banks and trust companies are authorized to give security for
these deposits.
(c) Subject to agreements with bondholders, the authority
shall prescribe a system of accounts in accordance with
generally accepted accounting principles.
(d) The authority shall employ a certified public
accountant to examine the books and accounts of the authority
including its receipts, disbursements, contracts, reserve funds,
sinking funds, investments and any other matters relating to its
financial standing. The examination shall be conducted at least
once in each year and copies of the examination report shall be
filed with the secretary of state, the director of the state
department of audit and the legislative service office.