17-2336.   Housing bonds legal investments for banking and insuranceinstitutions; authorized security for public deposits.All banks, bankers, trust companies, savings banks and institutions,investment companies, insurance companies, insurance associations andother persons carrying on a banking or insurance business may legallyinvest any moneys or funds belonging to them or within their control inany bonds or other obligations issued by a city or any housing authoritythereof created pursuant to the municipal housing law of this state orissued by any public housing authority or agency in the United States,any of its territories, the District of Columbia, Puerto Rico, Guam, orthe Virgin Islands, when such bonds or other obligations are secured bya pledge of annual contributions or other financial assistance to bepaid by the United States government or any agency thereof, or when suchbonds or other obligations are secured by an agreement between theUnited States government or any agency thereof and the city or thepublic housing authority or agency in which the United States governmentor any agency thereof agrees to lend to the city or the public housingauthority or agency, prior to the maturity of the bonds or otherobligations, moneys in an amount which (together with any other moneysirrevocably committed to the payment of interest on the bonds or otherobligations) will suffice to pay the principal of the bonds or otherobligations with interest to maturity, which moneys under the terms ofthe agreement are required to be used for that purpose, and such bondsand other obligations shall be authorized security for all publicdeposits and shall be fully negotiable in this state; it being thepurpose of this act to authorize any of the foregoing to use any fundsowned or controlled by them, including (but not limited to) sinking,insurance, investment, retirement, compensation, pension and trustfunds, and funds held on deposit, for the purchase of any such bonds orother obligations: Provided, Nothing contained in this act shall beconstrued as relieving any person, firm or corporation from any duty ofexercising reasonable care in selecting securities. The provisions ofthis act shall apply notwithstanding any restrictions on investmentscontained in other laws.

      History:   L. 1957, ch. 76, § 1; June 29.