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<br />Minnesota Statutes 2001, 118A.04 <br /> <br />Page 10f2 <br /> <br />MinnesotiLSilltut~100LTabl,,_of CllilJ)ters <br /> <br />:rabkM~ontenJQJ9LChiWter~] 8A <br /> <br />118A.04 Investments. <br /> <br />subdivision 1. <br />other purposes or <br />in the manner and <br />section. <br /> <br />Any public funds, not presently needed for <br />restricted for other purposes, may be invested <br />subject to the conditions provided for in this <br /> <br />Subd. 2. United States securities. Public funds may <br />be invested in governmental bonds, notes, bills, mortgages <br />(excluding high-risk mortgage-backed securities), and other <br />securities, which are direct obligatiops or are guaranteed or <br />insured issues of the United States, its agencies, its <br />instrumentalities, or organizations created by an act of <br />Congress. <br /> <br />Subd. 3. State and local securities. Funds may be <br />invested in the following: <br /> <br />(l) any security which is a general obligation of any state <br />or local government with taxing powers which is rated "An or <br />better by a national bond rating service; <br /> <br />(2) any security which is a revenue obligation of any state <br />or local government with taxing powers which is rated "AAl1 or <br />better by a national bond rating service; and <br /> <br />(3) a general obligation of the Minnesota housing finance <br />agency which is a moral obligation of the state of Minnesota and <br />is rated "A" or better by a national bond rating agency. <br /> <br />Subd. 4. Commercial papers. Funds may be invested in <br />commercial paper issued by United States corporations or their <br />Canadian subsidiaries that is rated in the highest quality <br />category by at least two nationally recognized rating agencies <br />and matures in 270 days or less. <br /> <br />Subd. 5. Time deposits. Funds may be invested in <br />time deposits that are fully insured by the Federal Deposit <br />Insurance Corporation or bankers acceptances of United States <br />banks. <br /> <br />Subd. 6. High-risk mortgage-backed securities. For <br />the purposes of this section and section _?::.l~_~_~,_.~.?-, Ilhigh-risk <br />mortgage-backed securities" are: <br /> <br />(a) interest-only or principal-only mortgage-backed <br />securitiesj and <br /> <br />(b) any mortgage derivative security that: <br /> <br />. <br /> <br />(1) has an expected average life greater than ten yearSj <br /> <br />(2) has an expected average life that: <br /> <br />http://www.revisor.leg.state.mn.us/stats/118A!04.html <br /> <br />9/13/2002 <br />