2009 California Public Utilities Code - Section 101325-101326 :: Article 5. Status As Investments

101325.  All bonds, including refunding bonds, issued by a district
are legal investments for all trust funds and for the funds of all
insurance companies, banks, both commercial and savings, and trust
companies, and for the State School Fund and for all sinking funds
under the control of the State Treasurer. Whenever any money or funds
may by law be invested in, or loaned upon the security of, bonds of
cities, cities and counties, counties, or school districts, in the
state, such money or funds may be invested in, or loaned upon the
security of, the bonds of the district; and whenever bonds of cities,
cities and counties, counties, or school districts by law may be
used as security for the faithful performance or execution of any
court or private trust or of any other act, bonds of the district may
be so used.

101326.  All bonds of the district, to the same extent as bonds of
any other municipality, are legal for use by any state or national
bank or banks in the state as security for the deposit of funds of
the state or of any county, city and county, city, municipality, or
other public or municipal corporation within the state.