PART III. 
PERMITTED INVESTMENTS



 



§431:6-301  Public obligations.  (a)  An
insurer may invest any of its funds in bonds or other evidences of debt, not in
default as to principal or interest, which are valid and legally authorized
obligations issued, assumed, or guaranteed by the United States or by any state
thereof or by any possession of the United States or by any county, city, town,
village, municipality, or district therein or by any political subdivision
thereof or by any civil division or public instrumentality of one or more of
the 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 upon
all taxable property or all taxable income within the jurisdiction of the
governmental unit, or



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



(b)  In addition to the foregoing, an insurer
may invest any of its funds in obligations issued or guaranteed by the
Inter-American Development Bank, the International Bank for Reconstruction and
Development, the Asian Development Bank or the African Development Bank. [L
1987, c 347, pt of §2; am L 1989, c 195, §16]