10
Senate
Bill 369
By:
Senators Hamrick of the 30th, Mullis of the 53rd and Murphy of the 27th
AS
PASSED
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 8 of the Official Code of Georgia Annotated, relating to buildings
and housing, so as to modify the agencies and instrumentalities in which housing
authorities can invest funds; to amend Title 36 of the Official Code of Georgia
Annotated, relating to local government, so as to modify the agencies and
instrumentalities in which political subdivisions can invest funds; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
8 of the Official Code of Georgia Annotated, relating to buildings and housing,
is amended by revising paragraph (5) of subsection (a) of Code Section 8-3-30 as
follows:
"(5)
Subject to any agreement with bondholders, to invest moneys of the authority not
required for immediate use to carry out the purposes of this part, including the
proceeds from the sale of any bonds and any moneys held in reserve funds, in
obligations which shall be limited to the following:
(A)
Bonds or other obligations of the state
or other
states or of other counties, municipal corporations, and political subdivisions
of this state or bonds or other
obligations the principal and interest of which are guaranteed by the
state;
(B)
Bonds or other obligations of the United States or of subsidiary corporations of
the United States government fully guaranteed by such government;
(C)
Obligations of
and
obligations guaranteed by agencies
or
instrumentalities of the United States
government,
including those issued by the Federal Land
Bank,
the
Federal Home Loan Bank, Federal Intermediate Credit Bank,
and
Bank for
Cooperatives,
and any other such agency or instrumentality now or hereafter in existence;
provided, however, that all such obligations shall have a current credit rating
from a nationally recognized rating service of at least one of the three highest
rating categories available and have a nationally recognized
market;
(D)
Bonds or other obligations issued by any public housing agency or municipality
in the United States, which bonds or obligations are fully secured as to the
payment of both principal and interest by a pledge of annual contributions under
an annual contributions contract or contracts with the United States government,
or project notes issued by any public housing agency, urban renewal agency, or
municipality in the United States and fully secured as to payment of both
principal and interest by a requisition, loan, or payment agreement with the
United States government;
(E)
Certificates of deposit of national or state banks located within the state
which have deposits insured by the Federal Deposit Insurance Corporation or the
Georgia Deposit Insurance Corporation, including the certificates of deposit of
any bank, savings and loan association, or building and loan association acting
as depository, custodian, or trustee for any such bond proceeds; provided,
however, that the portion of such certificates of deposit in excess of the
amount insured by the Federal Deposit Insurance Corporation or the Georgia
Deposit Insurance Corporation, if any such excess exists, shall be secured by
deposit with the Federal Reserve Bank of Atlanta, Georgia, the Federal Home Loan
Bank of Atlanta, Georgia,
or
with any national or state bank located
within the
state, or with
a trust office within this state, or one
or more of the following securities in an aggregate principal amount equal at
least to the amount of such excess:
(i)
Direct and general obligations of the state
or other
states or of any county or municipality in
the state;
(ii)
Obligations of the United States or subsidiary corporations included in
subparagraph (B) of this paragraph;
(iii)
Obligations of agencies
and
instrumentalities of the United States
government included in subparagraph (C) of this paragraph; or
(iv)
Bonds, obligations, or project notes of public housing agencies, urban renewal
agencies, or municipalities included in subparagraph (D) of this
paragraph;
(F)
Interest-bearing time deposits, repurchase agreements, reverse repurchase
agreements, rate guarantee agreements, or other similar banking arrangements
with a bank or trust company having capital and surplus aggregating at least $50
million or with any government bond dealer reporting to, trading with, and
recognized as a primary dealer by the Federal Reserve Bank of New York having
capital aggregating at least $50 million or with any corporation which is
subject to registration with the Board of Governors of the Federal Reserve
System pursuant to the requirements of the Bank Holding Company Act of 1956,
provided that each such interest-bearing time deposit, repurchase agreement,
reverse repurchase agreement, rate guarantee agreement, or other similar banking
arrangement shall permit the moneys so placed to be available for use at the
time provided with respect to the investment or reinvestment of such moneys;
and
(G)
Any and all other obligations of investment grade quality having a credit rating
from a nationally recognized rating service of at least one of the three highest
rating categories available and having a nationally recognized market,
including, but not limited to, collateralized mortgage obligations, owner trusts
offering collateralized mortgage obligations, guaranteed investment contracts
offered by any firm, agency, business, governmental unit, bank, insurance
company, corporation chartered by the United States Congress, or other entity,
real estate mortgage investment conduits, mortgage obligations, mortgage pools,
and pass-through securities;
and
(H)
Securities of or other interests in any no-load, open-end management type
investment company or investment trust registered under the Investment Company
Act of 1940, as amended, or any common trust fund maintained by any bank or
trust company which holds such proceeds as trustee or by an affiliate thereof so
long as:
(i)
The portfolio of such investment company or investment trust or common trust
fund is limited to the obligations referenced in subparagraphs (B) and (C) of
this paragraph and repurchase agreements are fully collateralized by any such
obligations;
(ii)
Such investment company or investment trust or common trust fund takes delivery
of such collateral either directly or through an authorized
custodian;
(iii)
Such investment company or investment trust or common trust fund is managed so
as to maintain its shares at a constant net asset value; and
(iv)
Securities of or other interests in such investment company or investment trust
or common trust fund are purchased and redeemed only through the use of national
or state banks located within this state having corporate trust
powers;"
SECTION
2.
Title
36 of the Official Code of Georgia Annotated, relating to local government, is
amended by revising Code Section 36-82-7 as follows:
"36-82-7.
The
proceeds of any bonds issued by any county, municipal corporation, school
district, or other political subdivision of this state or any portion thereof or
any authority or other public body corporate and politic created under the
Constitution or laws of this state may, from time to time, be placed for
investment and reinvestment in the local government investment pool created in
Chapter 83 of this title by the governing authorities of the county, municipal
corporation, school district, political subdivision, authority, or body or be
invested and reinvested by the governing authorities of the county, municipal
corporation, school district, political subdivision, authority, or body in the
following securities, and no others:
(1)
Bonds or obligations of such county, municipal corporation, school district,
political subdivision, authority, or body or bonds or obligations of this state
or other
states or of other counties, municipal
corporations, and political subdivisions of this state;
(2)
Bonds or other obligations of the United States or of subsidiary corporations of
the United States government which are fully guaranteed by such
government;
(3)
Obligations of
and
obligations guaranteed by agencies
or
instrumentalities of the United States
government,
including those issued by the Federal Land
Bank,
the
Federal Home Loan Bank, Federal Intermediate Credit Bank,
and
Bank for
Cooperatives,
and any other such agency or instrumentality now or hereafter in existence;
provided, however, that all such obligations shall have a current credit rating
from a nationally recognized rating service of at least one of the three highest
rating categories available and have a nationally recognized
market;
(4)
Bonds or other obligations issued by any public housing agency or municipal
corporation in the United States, which such bonds or obligations are fully
secured as to the payment of both principal and interest by a pledge of annual
contributions under an annual contributions contract or contracts with the
United States government, or project notes issued by any public housing agency,
urban renewal agency, or municipal corporation in the United States which are
fully secured as to payment of both principal and interest by a requisition,
loan, or payment agreement with the United States government;
(5)
Certificates of deposit of national or state banks located within this state
which have deposits insured by the Federal Deposit Insurance Corporation and
certificates of deposit of federal savings and loan associations and state
building and loan or savings and loan associations located within this state
which have deposits insured by the Savings Association Insurance Fund of the
Federal Deposit Insurance Corporation or the Georgia Credit Union Deposit
Insurance Corporation, including the certificates of deposit of any bank,
savings and loan association, or building and loan association acting as
depository, custodian, or trustee for any such bond proceeds. The portion of
such certificates of deposit in excess of the amount insured by the Federal
Deposit Insurance Corporation, the Savings Association Insurance Fund of the
Federal Deposit Insurance Corporation, or the Georgia Credit Union Deposit
Insurance Corporation, if any, shall be secured by deposit, with the Federal
Reserve Bank of Atlanta, Georgia, or with any national or state bank or federal
savings and loan association or state building and loan or savings and loan
association located within this state
or with a
trust office within this state, of one or
more of the following securities in an aggregate principal amount equal at least
to the amount of such excess: direct and general obligations of this state
or other
states or of any county or municipal
corporation in this state, obligations of the United States or subsidiary
corporations included in paragraph (2) of this Code section, obligations of the
agencies and
instrumentalities of the United States
government included in paragraph (3) of this Code section, or bonds,
obligations, or project notes of public housing agencies, urban renewal
agencies, or municipalities included in paragraph (4) of this Code section;
and
(6)
Securities of or other interests in any no-load, open-end management type
investment company or investment trust registered under the Investment Company
Act of 1940, as from time to time amended, or any common trust fund maintained
by any bank or trust company which holds such proceeds as trustee or by an
affiliate thereof so long as:
(A)
The portfolio of such investment company or investment trust or common trust
fund is limited to the obligations referenced in
paragraph
(2)
paragraphs (2)
and (3) of this Code section and
repurchase agreements fully collateralized by any such obligations;
(B)
Such investment company or investment trust or common trust fund takes delivery
of such collateral either directly or through an authorized
custodian;
(C)
Such investment company or investment trust or common trust fund is managed so
as to maintain its shares at a constant net asset value; and
(D)
Securities of or other interests in such investment company or investment trust
or common trust fund are purchased and redeemed only through the use of national
or state banks having corporate trust powers and located within this
state;
and
(7)
Interest-bearing time deposits, repurchase agreements, reverse repurchase
agreements, rate guarantee agreements, or other similar banking arrangements
with a bank or trust company having capital and surplus aggregating at least $50
million or with any government bond dealer reporting to, trading with, and
recognized as a primary dealer by the Federal Reserve Bank of New York having
capital aggregating at least $50 million or with any corporation which is
subject to registration with the Board of Governors of the Federal Reserve
System pursuant to the requirements of the Bank Holding Company Act of 1956,
provided that each such interest-bearing time deposit, repurchase agreement,
reverse repurchase agreement, rate guarantee agreement, or other similar banking
arrangement shall permit the moneys so placed to be available for use at the
time provided with respect to the investment or reinvestment of such
moneys."
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.