SECTIONS 120470-120473 - California Statutes

PUBLIC UTILITIES CODE

SECTION 120470-120473

120470. Subject to any agreement or covenant between the board and
the holders of any of its obligations limiting or restricting classes
of investments, the board may invest any surplus money in its
treasury, including money in any sinking fund, reserve fund, or other
fund created or established for the benefit of holders of any
outstanding obligations of the board, in any of the following:
(a) Its own bonds.
(b) Treasury notes, certificates of indebtedness, bills, bonds of
the United States, or any other evidence of indebtedness secured by
the full faith and credit of the United States.
(c) Obligations issued pursuant to the Federal Home Loan Bank Act
(12 U.S.C. Sec. 1421 et seq.) or the National Housing Act (12 U.S.C.
Sec. 1701 et seq.).
(d) Treasury notes or bonds of this state, or of any public
corporation, municipal corporation, public district, or political
subdivision within this state which are legal security for the
deposit of public funds.
(e) Any investment in which county funds may be placed pursuant to
the general laws of the state.

120471. The investment may be made by direct purchase of any issue
of the bonds, treasury notes, or obligations, or part thereof, at the
original sale or by the subsequent purchase of the bonds, treasury
notes, or obligations.

120472. Any bonds, treasury notes, or obligations purchased and
held as investments by the board may, from time to time, be sold and
the proceeds reinvested in bonds, treasury notes, or obligations as
provided in this article.

120473. Sales of any bonds, treasury notes, or obligations
purchased and held by the board shall, from time to time, be made in
season so that the proceeds may be applied to the purposes for which
the money with which the bonds, treasury notes, or obligations were
originally purchased was placed in the treasury of the board.