2010 California Code
Government Code
Article 1. General

16430.  Eligible securities for the investment of surplus moneys
shall be any of the following:
   (a) Bonds or interest-bearing notes or obligations of the United
States, or those for which the faith and credit of the United States
are pledged for the payment of principal and interest.
   (b) Bonds or interest-bearing notes on obligations that are
guaranteed as to principal and interest by a federal agency of the
United States.
   (c) Bonds, notes, and warrants of this state, or those for which
the faith and credit of this state are pledged for the payment of
principal and interest.
   (d) Bonds or warrants, including, but not limited to, revenue
warrants, of any county, city, metropolitan water district,
California water district, California water storage district,
irrigation district in the state, municipal utility district, or
school district of this state.
   (e) Any of the following:
   (1) Bonds, consolidated bonds, collateral trust debentures,
consolidated debentures, or other obligations issued by federal land
banks or federal intermediate credit banks established under the
Federal Farm Loan Act, as amended (12 U.S.C. Sec. 2001 et seq.).
    (2) Debentures and consolidated debentures issued by the Central
Bank for Cooperatives and banks for cooperatives established under
the Farm Credit Act of 1933, as amended (12 U.S.C. Sec. 2001 et
seq.).
    (3) Bonds or debentures of the Federal Home Loan Bank Board
established under the Federal Home Loan Bank Act (12 U.S.C. Sec. 1421
et seq.).
    (4) Stocks, bonds, debentures, and other obligations of the
Federal National Mortgage Association established under the National
Housing Act, as amended (12 U.S.C. Sec. 1701 et seq.).
   (5) Bonds of any federal home loan bank established under that
act.
    (6) Obligations of the Federal Home Loan Mortgage Corporation.
   (7) Bonds, notes, and other obligations issued by the Tennessee
Valley Authority under the Tennessee Valley Authority Act, as amended
(16 U.S.C. Sec. 831 et seq.).
    (8) Other obligations guaranteed by the Commodity Credit
Corporation for the export of California agricultural products under
the Commodity Credit Corporation Charter Act, as amended (15 U.S.C.
Sec. 714 et seq.).
   (f) (1) Commercial paper of "prime" quality as defined by a
nationally recognized organization that rates these securities, if
the commercial paper is issued by a corporation, trust, or limited
liability company that is approved by the Pooled Money Investment
Board as meeting the conditions specified in either subparagraph (A)
or subparagraph (B):
   (A) Both of the following conditions:
   (i) Organized and operating within the United States.
   (ii) Having total assets in excess of five hundred million dollars
($500,000,000).
   (B) Both of the following conditions:
   (i) Organized within the United States as a special purpose
corporation, trust, or limited liability company.
   (ii) Having programwide credit enhancements including, but not
limited to, overcollateralization, letters of credit, or surety bond.
   (2) A purchase of eligible commercial paper may not do any of the
following:
   (A) Exceed 180 days' maturity.
   (B) Represent more than 10 percent of the outstanding paper of an
issuing corporation, trust, or limited liability company.
   (C) Exceed 30 percent of the resources of an investment program.
   (3) At the request of the Pooled Money Investment Board, an
investment made pursuant to this subdivision shall be secured by the
issuer by depositing with the Treasurer securities authorized by
Section 53651 of a market value at least 10 percent in excess of the
amount of the state's investment.
   (g) Bills of exchange or time drafts drawn on and accepted by a
commercial bank, otherwise known as bankers acceptances, that are
eligible for purchase by the Federal Reserve System.
   (h) Negotiable certificates of deposits issued by a federally or
state-chartered bank or savings and loan association, a
state-licensed branch of a foreign bank, or a federally or
state-chartered credit union. For the purposes of this section,
negotiable certificates of deposits are not subject to Chapter 4
(commencing with Section 16500) and Chapter 4.5 (commencing with
Section 16600).
   (i) The portion of bank loans and obligations guaranteed by the
United States Small Business Administration or the United States
Farmers Home Administration.
   (j) Bank loans and obligations guaranteed by the Export-Import
Bank of the United States.
   (k) Student loan notes insured under the Guaranteed Student Loan
Program established pursuant to the Higher Education Act of 1965, as
amended (20 U.S.C. Sec. 1001 and following) and eligible for resale
to the Student Loan Marketing Association established pursuant to
Section 133 of the Education Amendments of 1972, as amended (20
U.S.C. Sec. 1087-2).
   (l) Obligations issued, assumed, or guaranteed by the
International Bank for Reconstruction and Development, the
Inter-American Development Bank, the Asian Development Bank, the
African Development Bank, the International Finance Corporation, or
the Government Development Bank of Puerto Rico.
   (m) Bonds, debentures, and notes issued by corporations organized
and operating within the United States. Securities eligible for
investment under this subdivision shall be within the top three
ratings of a nationally recognized rating service.
   (n) Negotiable Order of Withdrawal Accounts (NOW Accounts),
invested in accordance with Chapter 4 (commencing with Section
16500).



16431.  (a) Notwithstanding any other provisions of this code, funds
held by the state pursuant to a written agreement between the state
and employees of the state to defer a portion of the compensation
otherwise receivable by the state's employees and pursuant to a plan
for that deferral as adopted by the state and approved by the
California Victim Compensation and Government Claims Board, may be
invested in the types of investments set forth in Sections 53601 and
53602, and may additionally be invested in corporate stocks, bonds,
and securities, mutual funds, savings and loan accounts, credit union
accounts, annuities, mortgages, deeds of trust, or other security
interests in real or personal property. Nothing in this section shall
be construed to permit any type of investment prohibited by the
California Constitution.
   (b) Deferred compensation funds are public pension or retirement
funds for the purposes of Section 17 of Article XVI of the California
Constitution.