Sec 5-873. Authorized investments of monies

A. The monies in either the bond proceeds subaccount or the debt service account may be invested and reinvested at the direction of the board in any of the following:

1. United States treasury obligations.

2. Consolidated farm loan bonds.

3. Obligations issued by the federal intermediate credit banks or by bonds for cooperatives on authority of the farm credit act of 1933.

4. Any other obligations guaranteed by the United States government.

5. Any investments that are authorized by any other agencies of the United States government and that are authorized to secure public deposits.

6. State and local government series United States treasury securities.

7. State, county or municipal bonds issued in this state and on which the payments of interest have not been deferred.

8. Investment agreements and repurchase agreements collateralized by investments described in paragraphs 1 through 5.

B. The purchase of the securities shall be made by the treasurer or fiscal agent on authority of a resolution of the board. The treasurer or fiscal agent shall act as custodian of all securities purchased.

C. The board may place any restrictions on reinvestment yield on bond proceeds or on any monies pledged to pay the bonds if necessary to comply with federal income tax laws and regulations to gain any federal tax benefits available with respect to the bonds.