48-1778. Authority of directors to invest
monies; approved investments
The board of directors may, in the best interests of the district, invest and
reinvest monies of the district in any of the following:
1. Bonds or other evidences of indebtedness of the United States or any of its
agencies or instrumentalities if the obligations are guaranteed as to principal and
interest by the United States or by any agency or instrumentality of the United States.
2. Bonds or other evidences of indebtedness of this state or of any county,
incorporated city or town or duly organized school district of this state.
3. Bonds, notes or evidences of indebtedness of any county, municipality or
municipal district utility within this state, which are payable from revenues or earnings
specifically pledged for the payment of the principal and interest on the obligations and
for the payment of which a lawful sinking fund or reserve fund has been established and
is being maintained, but only if no default in payment of principal or interest on the
obligations to be purchased has occurred within five years of the date of investment or,
if the obligations were issued less than five years prior to the date of investment, no
default in payment of principal or interest has occurred on the obligations to be
purchased nor on any other obligations of the issuer within five years of the investment.
4. Bonds, notes or evidences of indebtedness issued by any municipal improvement
district in this state to finance local improvements authorized by law if the principal
and interest of the obligations are payable from assessments on real property within the
local improvement district. The board of directors shall not make the investment if the
face value of all the obligations, and similar obligations outstanding, exceeds fifty per
cent of the market value of the real property and improvements upon which the bonds or
the assessments for the payment of principal and interest on the bonds are liens inferior
only to the liens for general ad valorem property taxes. The board of directors may make
the investment only if no default in payment of principal or interest on the obligations
to be purchased has occurred within five years of the date of investment or, if the
obligations were issued less than five years prior to the date of investment, no default
in payment of principal or interest has occurred on the obligations to be purchased nor
on any other obligation of the issuer within five years of the investment.
5. Interest bearing savings accounts or certificates of deposit insured in banks or
savings and loan associations doing business in this state by the federal deposit
insurance corporation or the federal savings and loan insurance corporation but only if
they are secured by the depository to the same extent and in the same manner as required
by the general depository law of this state. Security is not required for that portion
of any deposit that is insured under any law of the United States.
6. Bonds, debentures or other obligations issued by the federal land banks, the
federal intermediate credit banks, the banks for cooperatives or by the national rural
utility cooperative finance corporations.
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