360.120. Approved investments.

MISSOURI STATUTES AND CODES

360.120. Approved investments.

Approved investments.

360.120. 1. The authority may invest any of its funds in:

(1) Bonds, notes, certificates of indebtedness, treasurybills, or other securities constituting direct obligations of, orobligations the principal of and interest on which are fullyguaranteed by, the United States, including evidences of a directownership interest in future interests or principal payments onobligations issued or guaranteed by the United States, orsecurities which represent an undivided interest in suchobligations, which obligations are held in a custody account by acustodian satisfactory to the authority;

(2) Bonds, notes or other obligations of any state of theUnited States or of any political subdivision of any state, whichat the time of their purchase rated in either of the two highestrating categories by a nationally recognized rating service;

(3) Certificates of deposit or time deposits constitutingdirect obligations of any bank, bank holding company, savings andloan association, trust company, financial institution or othercredit provider, except that investments may be made only incertificates of deposit or time deposits which are:

(a) Insured by the Federal Deposit Insurance Corporation orthe Federal Savings and Loan Credit Corporation, if then inexistence;

(b) Continuously and fully secured by securities describedin subdivisions (1) and (2) of this subsection, which have amarket value, exclusive of accrued interest, at all times atleast equal to the principal amount of such certificates ofdeposit or time deposits; or

(c) Issued by a bank, bank holding company, savings andloan association, trust company, financial institution or othercredit provider whose outstanding unsecured long-term debt israted at the time of issuance in either of the two highest ratingcategories by a nationally recognized rating service;

(4) Repurchase agreements with any bank, bank holdingcompany, savings and loan association, trust company, financialinstitution or other credit provider organized under the laws ofthe United States or any state, which are secured by any one ormore of the securities described in subdivision (1) or (2) ofthis subsection and which have a market value, exclusive ofaccrued interest, at all times at least equal to the principalamount of such repurchase agreement;

(5) Investment agreements constituting an obligation of abank, bank holding company, savings and loan association, trustcompany, financial institution or other credit provider whoseoutstanding unsecured long-term debt is rated at the time of suchagreement in either of the two highest rating categories by anationally recognized rating service; or

(6) Short-term discount obligations of the Federal NationalMortgage Association and Government National MortgageAssociation.

All such securities so purchased shall mature or be redeemable atthe option of the holder on a date or dates prior to the timewhen, in the judgment of the authority, the funds so investedwill be required for expenditure. The express judgment of theauthority as to the time when any funds will be required forexpenditure or be redeemable shall be final and conclusive.

2. The provisions of this section shall not apply to theinvestment of proceeds of any revenue bonds issued by theauthority which proceeds are held by a trustee or escrow agentunder a trust indenture, escrow agreement or similar agreement ina construction fund, acquisition fund, project fund or othersimilar such fund for disbursement to or on behalf of anidentified educational institution or health institution pursuantto a loan agreement with the authority or in a debt servicereserve fund or escrow fund established with such proceeds.