2007 California Public Utilities Code Article 7. Investments

CA Codes (puc:12871-12875)

12871.  A district may invest any surplus money in its treasury,
including money in any sinking fund, in any of the following:
   (a) Its own bonds, whether issued on behalf of the entire district
or any special district.
   (b) Treasury notes, certificates of indebtedness, bills, bonds of
the United States, or any other evidence of indebtedness secured by
the full faith and credit of the United States.
   (c) Obligations issued pursuant to the Federal Home Loan Bank Act
or the National Housing Act.
   (d) Treasury notes or bonds of this state, or of any public
corporation, municipal corporation, public district, or political
subdivision within this state which are legal as security for the
deposit of public funds.
   (e) Obligations issued by federal intermediate credit banks,
federal land banks, and banks for cooperatives.
   (f) Obligations issued or assumed by the International Bank for
Reconstruction and Development, the Tennessee Valley Authority, the
Inter-American Development Bank, or Export-Import Bank of Washington
participation certificates.
   (g) Banker's acceptances of banks having total deposits of one
billion dollars (,000,000,000) or more.
   (h) Any securities in which savings banks in this state may
legally invest their funds pursuant to Sections 1350 to 1366,
inclusive, of the Financial Code; provided, that the provisions of
said sections limiting the amount which a savings bank may invest in
securities to a specified percent of its paid-up capital and surplus,
or savings deposits, shall not apply to investments authorized by
the terms of this section.



12872.  Such investment may be made by direct purchase of any issue
of such bonds, treasury notes, or obligations, or part thereof, at
the original sale or by the subsequent purchase of the bonds,
treasury notes, or obligations.


12873.  Any bonds, treasury notes, or obligations purchased and held
as investments by the district may from time to time be sold and the
proceeds reinvested in bonds, treasury notes, or obligations as
provided in this article.


12874.  Sales of any bonds, treasury notes, or obligations purchased
and held by the district shall from time to time be made in season
so that the proceeds may be applied to the purposes for which the
money with which the bonds, treasury notes, or obligations were
originally purchased was placed in the treasury of the district.




12875.  Notwithstanding any other provision of law, a district which
has owned and operated a water distribution or sewage disposal
system for at least eight years and which has a population of 250,000
or more may enter into contracts commonly known as "interest rate
swap agreements" or "forward payment conversion agreements" with any
person providing for the exchange of payments between the person and
the district including, without limitation, contracts providing for
the exchange of fixed interest payments for floating payments or
floating interest payments for fixed payments, or a combination
thereof, after giving due consideration for the creditworthiness of
the counter parties, where applicable, including any rating by a
nationally recognized agency or such other criteria as may be
appropriate.  The contracts may be made upon the terms and conditions
established by the board.  The authority conferred by this section
includes the authority to enter into any and all contracts incident
to the exercise of the authority conferred by this section including,
without limitation, contracts to obtain credit enhancement devices
and contracts for the performance of professional services.