§ 15-5-407 - Bond Guaranty Reserve Account -- Investment of funds. - Arkansas Statutes

15-5-407. Bond Guaranty Reserve Account -- Investment of funds.

(a) (1) The Arkansas Development Finance Authority is authorized to establish a Bond Guaranty Reserve Account in an Arkansas financial institution or institutions that are members of the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation.

(2) The account shall be in the name of the authority, and the amount thereof in excess of that insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation must be secured by, and the authority is authorized to invest account funds in:

(A) Direct obligations of, or obligations which are guaranteed by, the United States;

(B) Obligations, debentures, notes, or other evidences of indebtedness issued or guaranteed by any of the following:

(i) Bank for Cooperatives;

(ii) Export-Import Bank of the United States;

(iii) Farmers Home Administration;

(iv) Federal Financing Bank;

(v) Federal Home Loan Bank System;

(vi) Federal Home Loan Mortgage Corporation;

(vii) Federal Housing Administration;

(viii) Federal Intermediate Credit Bank;

(ix) Federal Land Bank;

(x) Federal National Mortgage Association; or

(xi) Government National Mortgage Association;

(C) Repurchase agreements with financial institutions acting as principal or agent for securities described in subdivisions (a)(1) and (2) of this section, if the securities are delivered to the authority or trustee on its behalf;

(D) Obligations issued by public agencies or municipalities and fully secured as to the payment of both principal and interest by a pledge of annual contributions under an annual contributions contract or contracts with the United States or temporary notes, preliminary loan notes, or project notes issued by public agencies or municipalities, in each case fully secured as to the payment of both principal and interest by a requisition or payment agreement with the United States;

(E) Certificates of deposit or time deposits or similar banking arrangements with a bank or banks insured by the Federal Deposit Insurance Corporation or savings and loan association or associations insured by the Federal Savings and Loan Insurance Corporation; and

(F) Investment agreements, capital notes, or banking arrangements with financial institutions or holding companies thereof approved by the Board of Directors of the Arkansas Development Finance Authority, and to provide for the sale of any such investment and for the reinvestment of the proceeds thereof.

(b) (1) All moneys received by the authority under and pursuant to the provisions of this subchapter shall be deposited as and when received in the account.

(2) It is the intent of this subchapter that idle funds in the account shall be invested as provided in this section in order that maximum interest return may be received by the account.

(c) All moneys now or hereafter deposited in or paid to the authority for deposit in the account are specifically declared to be cash funds, received from sources other than taxes, restricted in their use and shall not be deposited in the State Treasury but shall be deposited in one (1) or more banks, as set forth in this section.