PART III. PERMITTED INVESTMENTS

 

§431:6-301  Public obligations.  (a)  Aninsurer may invest any of its funds in bonds or other evidences of debt, not indefault as to principal or interest, which are valid and legally authorizedobligations issued, assumed, or guaranteed by the United States or by any statethereof or by any possession of the United States or by any county, city, town,village, municipality, or district therein or by any political subdivisionthereof or by any civil division or public instrumentality of one or more ofthe foregoing, if, by statutory or other legal requirements applicable thereto,such obligations are payable, as to both principal and interest:

(1)  From taxes levied or required to be levied uponall taxable property or all taxable income within the jurisdiction of thegovernmental unit, or

(2)  From adequate special revenues pledged orotherwise appropriated or by law required to be provided for the purpose ofsuch payment, but not including any obligation payable solely out of specialassessments on properties benefited by local improvements unless adequatesecurity is evidenced by the ratio of assessment to the value of the propertyor the obligation is additionally secured by an adequate guaranty fund requiredby law.

(b)  In addition to the foregoing, an insurermay invest any of its funds in obligations issued or guaranteed by theInter-American Development Bank, the International Bank for Reconstruction andDevelopment, the Asian Development Bank or the African Development Bank. [L1987, c 347, pt of §2; am L 1989, c 195, §16]