2010 California Code
Health and Safety Code
Chapter 7. Revenue Bonds

51350.  (a) The agency may, from time to time, issue its bonds in
the principal amount that the agency determines necessary to provide
sufficient funds for financing housing developments and other
residential structures, the payment of interest on bonds of the
agency, the establishment of reserves to secure the bonds, the
payment of other expenditures of the agency incident to, and
necessary or convenient to, issuance of the bonds, and for the other
purposes provided by Sections 51065.5 and 51365.
   (b) (1) Sale of the bonds of the agency shall be coordinated by
the Treasurer. To obtain a date for the sale of bonds, the agency
shall inform the Treasurer of the amount of the proposed issue. Upon
that notification, the Treasurer shall provide three 10-day periods,
within the 90 days next following, when the bonds can be sold. The
agency may choose any date during the suggested periods or any other
date to which the agency and the Treasurer have mutually agreed. The
Treasurer shall sell the bonds on the date chosen according to terms
approved by the agency.
   (2) The agency shall exercise its powers with due regard for the
right of the holders of bonds of the agency at any time outstanding,
and nothing in, or done pursuant to, this section shall in any way
limit, restrict, or alter the obligation or powers of the agency or
any member, officer, or representative of the agency or the Treasurer
to carry out and perform in every detail each and every covenant,
agreement, or contract at any time made or entered into on behalf of
the agency with respect to its bonds or its benefits, or the security
of the holders of the bonds.
   (c) Except as provided in subdivisions (d) to (h), inclusive, the
aggregate principal amount of bonds that may be outstanding at any
time pursuant to this part shall not exceed seven hundred fifty
million dollars ($750,000,000), exclusive of the principal
indebtedness of bonds issued to refund or renew previously issued
bonds of the agency, to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (d) Effective January 1, 1980, the aggregate principal amount of
bonds that may be outstanding at any time pursuant to this part shall
be increased by seven hundred fifty million dollars ($750,000,000),
exclusive of (1) bonds previously authorized pursuant to subdivision
(c), and (2) the principal indebtedness of bonds issued to refund or
renew bonds of the agency previously issued under the authority of
this subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (e) Effective January 1, 1983, the aggregate principal amount of
bonds that may be outstanding at any time pursuant to this part shall
be additionally increased by three hundred fifty million dollars
($350,000,000) exclusive of (1) bonds previously authorized pursuant
to subdivision (c) or (d), and (2) the principal indebtedness of
bonds issued to refund or renew bonds of the agency previously issued
under the authority of this subdivision, but only to the extent of
the outstanding principal indebtedness of the previously issued bonds
and any redemption premium thereon and any interest accrued or to
accrue to the date of the redemption of the bonds, during the period
in which both the previously issued bonds and the refunding or
renewal bonds are outstanding.
   (f) Effective January 1, 1984, the aggregate principal amount of
bonds that may be outstanding at any time pursuant to this part shall
be additionally increased by five hundred million dollars
($500,000,000), exclusive of (1) bonds previously authorized pursuant
to any of subdivisions (c) to (e), inclusive, and (2) the principal
indebtedness of bonds issued to refund or renew bonds of the agency
previously issued under the authority of this subdivision, but only
to the extent of the outstanding principal indebtedness of the
previously issued bonds and any redemption premium thereon and any
interest accrued or to accrue to the date of the redemption of the
bonds, during the period in which both the previously issued bonds
and the refunding or renewal bonds are outstanding.
   (g) On the effective date of the amendments to this section
enacted by the Statutes of 1985, the aggregate principal amount of
bonds that may be outstanding at any time pursuant to this part shall
be additionally increased by six hundred million dollars
($600,000,000), exclusive of (1) bonds previously authorized pursuant
to any of subdivisions (c) to (f), inclusive, and (2) the principal
indebtedness of bonds issued to refund or renew bonds of the agency
previously issued under the authority of this subdivision, but only
to the extent of the outstanding principal indebtedness of the
previously issued bonds and any redemption premium thereon and any
interest accrued or to accrue to the date of the redemption of the
bonds, during the period in which both the previously issued bonds
and the refunding or renewal bonds are outstanding.
   (h) On the effective date of the amendments to this section
enacted by the Statutes of 1985, the aggregate principal amount of
bonds that may be outstanding at any time pursuant to this part shall
be additionally increased by six hundred million dollars
($600,000,000), exclusive of (1) bonds previously authorized pursuant
to any of subdivisions (c) to (g), inclusive, and (2) the principal
indebtedness of bonds issued to refund or renew bonds of the agency
previously issued under the authority of this subdivision, but only
to the extent of the outstanding principal indebtedness of the
previously issued bonds and any redemption premium thereon and any
interest accrued or to accrue to the date of the redemption of the
bonds, during the period in which both the previously issued bonds
and the refunding or renewal bonds are outstanding.
   (i) Effective September 4, 1990, the aggregate principal amount of
bonds that may be outstanding at any one time pursuant to this part
shall be additionally increased by nine hundred million dollars
($900,000,000), exclusive of the following: (1) bonds previously
authorized pursuant to any of subdivisions (c) to (h), inclusive, and
(2) the principal indebtedness of bonds issued to refund or renew
bonds of the agency previously issued under the authority of this
subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
the redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (j) On the effective date of the amendments to this section which
added this subdivision, the aggregate principal amount of bonds that
may be outstanding at any one time pursuant to this part shall be
additionally increased by nine hundred million dollars
($900,000,000), exclusive of the following: (1) bonds previously
authorized pursuant to any of subdivisions (c) to (i), inclusive, and
(2) the principal indebtedness of bonds issued to refund or renew
bonds of the agency previously issued under the authority of this
subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
the redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (k) Effective January 1, 1998, the aggregate principal amount of
bonds that may be outstanding at any one time pursuant to this part
shall be additionally increased by one billion four hundred million
dollars ($1,400,000,000), exclusive of: (1) bonds previously
authorized pursuant to any of subdivisions (c) to (j), inclusive, and
(2) the principal indebtedness of bonds issued to refund or renew
bonds of the agency previously issued under the authority of this
subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
the redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (l) Effective January 1, 2000, the aggregate principal amount of
bonds that may be outstanding at any one time pursuant to this part
shall be additionally increased by two billion two hundred million
dollars ($2,200,000,000), exclusive of: (1) bonds previously
authorized pursuant to any of subdivisions (c) to (k), inclusive, and
(2) the principal indebtedness of bonds issued to refund or renew
bonds of the agency previously issued under the authority of this
subdivision, but only to the extent of the outstanding principal
indebtedness of the previously issued bonds and any redemption
premium thereon and any interest accrued or to accrue to the date of
the redemption of the bonds, during the period in which both the
previously issued bonds and the refunding or renewal bonds are
outstanding.
   (m) Effective January 1, 2002, the aggregate principal amount of
bonds that may be outstanding at any one time pursuant to this part
shall be increased by two billion two hundred million dollars
($2,200,000,000), exclusive of (1) bonds previously authorized
pursuant to any of subdivisions (c) to (l), inclusive, and (2) the
principal indebtedness of bonds issued to refund or renew bonds of
the agency previously issued under the authority of this subdivision,
but only to the extent of the outstanding principal indebtedness of
the previously issued bonds and any redemption premium thereon and
any interest accrued or to accrue to the date of the redemption of
the bonds, during the period in which both the previously issued
bonds and the refunding or renewal bonds are outstanding.
   (n) Effective January 1, 2008, the aggregate principal amount of
bonds that may be outstanding at any one time pursuant to this part
shall be increased by two billion dollars ($2,000,000,000), exclusive
of (1) bonds previously authorized pursuant to any of subdivisions
(c) to (m), inclusive, and (2) the principal indebtedness of bonds
issued to refund or renew bonds of the agency previously issued under
the authority of this subdivision, but only to the extent of the
outstanding principal indebtedness of the previously issued bonds and
any redemption premium thereon and any interest accrued or to accrue
to the date of the redemption of the bonds, during the period in
which both the previously issued bonds and the refunding or renewal
bonds are outstanding.



51350.5.  The limitation set forth in Section 51350 on the amount of
the agency's bonds which may be concurrently outstanding, including
any changes, expansions of, or additions to, such limitations, shall
not apply to (a) bonds issued to finance construction of rental
housing developments assisted pursuant to Chapter 9 (commencing with
Section 50735) of Part 2 of this division, or (b) bonds issued to
refund or renew such bonds, to the extent of the outstanding
principal indebtedness of the previously issued bonds and any
redemption premium thereon, and any interest accrued or to accrue to
the date of redemption of such bonds. Bonds specified in this section
shall not be included or considered when applying the limitation on
amount of bonds specified in subdivision (c) of Section 51350 or in
any other provisions of law which may be enacted to provide
additional bonding authority to the agency and which certain dollar
limitations respecting the amount of bonds issued or outstanding.



51352.  Except as may otherwise be expressly provided by resolution
of the agency, every issue of its bonds shall be general obligations
of the agency payable out of any assets, revenues, or moneys of the
agency, subject only to any agreements with the holders of particular
bonds pledging any particular assets, revenues, or moneys.




51353.  The bonds shall be authorized by resolution or resolutions
of the agency, shall be in such form, shall bear such date or dates,
and shall mature at such time or times as such resolution or
resolutions may provide, except that no bond shall mature more than
50 years from the date of its issue. The bonds may be issued as
serial bonds or as term bonds, or as a combination thereof, and,
notwithstanding any other provision of law, the amount of principal
of, or interest on, bonds maturing at each date of maturity need not
be equal. The bonds shall bear interest at such rate or rates, be in
such denominations, be in such form, either coupon or registered,
carry such registration privileges, be executed in such manner, be
payable in such medium of payment at such place or places within or
without the state, be subject to such terms of redemption and contain
such terms and conditions as such resolution or resolutions may
provide. The bonds of the agency shall be sold at public or private
sale by the State Treasurer at, above, or below the par value, on
such terms and conditions and for such consideration in such medium
of payment as the agency shall determine by resolution prior to the
sale.



51354.  The agency may, from time to time, issue (1) bonds to renew
bonds and (2) other bond obligations to pay bonds including the
interest thereon, and, whenever it deems refunding expedient, to
refund any bonds by the issuance of new bonds, whether the bonds to
be refunded have or have not matured and to issue bonds partly to
refund bonds then outstanding and partly for any of its purposes.



51355.  Any resolution or resolutions authorizing any bonds or issue
therefor may contain provisions, which shall be a part of the
contract or contracts with the holders thereof, as to:
   (a) Pledging all or any part of the revenues of the agency to
secure the payment of the bonds or any issue thereof, subject to such
agreements with bondholders as may then exist.
   (b) Pledging all or any part of the assets of the agency,
including mortgages and obligations securing the same, to secure the
payment of the bonds or any issue thereof, subject to such agreements
with bondholders as may then exist.
   (c) The use and disposition of the gross income from mortgages
owned by the agency and payment of principal of mortgages owned by
the agency.
   (d) The setting aside of reserves or sinking funds and the
regulation and disposition thereof.
   (e) Limitations on the purposes to which the proceeds of a sale of
bonds may be applied and pledging such proceeds to secure the
payment of the bonds or of any issue thereof.
   (f) Limitations on the issuance of additional bonds, the terms
upon which additional notes or bonds may be issued and secured, and
the refunding of outstanding bonds.
   (g) The procedure, if any, by which the terms of any contract with
bondholders may be amended or abrogated, the amount of bonds the
holders of which must consent thereto, and the manner in which such
consent may be given.
   (h) Limitations on the amount of moneys to be expended by the
agency for operating expenses of the agency.
   (i) Vesting in a trustee or trustees such property, rights,
powers, and duties in trust as the agency may determine, and
providing for or limiting or abrogating the right of the bondholders
to appoint a trustee or limiting the rights, powers, and duties of
such trustee.
   (j) Defining the acts or omissions to act which shall constitute a
default in the obligations and duties of the agency to the holders
of the bonds and providing for the rights and remedies of the holders
of the bonds in the event of such default. However, such rights and
remedies shall not be inconsistent with the general laws of the state
and the other provisions of this division.
   (k) Any other matters of like or different character, which in any
way affect the security, protection, or investment return of the
holders of the bonds.



51356.  Any resolution or resolutions authorizing any bonds or issue
thereof shall specify the extent to which revenues resulting from
loans made with proceeds of the bonds so authorized are to be used to
secure the bonds and the extent to which such revenues may be used
for other purposes.


51357.  Any pledge made by the agency shall be valid and binding
from the time when the pledge is made. The revenues, moneys, or
property so pledged and thereafter received by the agency shall
immediately be subject to the lien of such pledge without any
physical delivery thereof or further act, and the lien of any such
pledge shall be valid and binding as against all parties having
claims of any kind in tort, contract, or otherwise against the
agency, irrespective of whether such parties have notice thereof.
Neither the resolution nor any other instrument by which a pledge is
created need be recorded.



51358.  Bond underwriters and consultants shall be selected by the
agency.


51359.  The members of the board, the executive director of the
agency, or any other person executing such notes or bonds shall not
be subject to any personal liability or accountability by reason of
the issuance thereof.


51361.  The Treasurer shall act as trustee for the agency and the
holders of its bonds, provided the Treasurer elects to serve as
trustee with respect to a particular issuance of bonds by notifying
the agency of this election in writing at or prior to the board
meeting at which the board approves a resolution authorizing the
issuance and sale of the bonds.
   Any bonds issued under this division may be secured by a trust
agreement, indenture, or resolultion, by and between the agency and a
trustee or trustees, which may be the Treasurer or any trust company
or bank having the powers of a trust company within or without the
state. Notwithstanding other provisions in this division, references
to the Treasurer as trustee shall be deemed to refer to either the
Treasurer or the duly empowered bank or trust company trustee as the
case may be. The trust agreement, indenture, or the resolution
providing for the issuance of the bonds may pledge or assign revenues
to be received or proceeds of any contract or contracts pledged. Any
resolution authorizing any bonds or issue thereof shall prescribe
the duties of the Treasurer with respect to the issuance,
authentication, sale, and delivery of the bonds, the payment of
principal and interest thereof, and the redemption of the bonds.
Notwithstanding any other provision of law, the Treasurer shall not
be deemed to have a conflict of interest by reason of acting as
trustee pursuant to this division.
   The agency may provide by a resolution for the deposit of all
revenues pledged for the security of the bonds in one or more
separate accounts in the California Housing Finance Fund under the
control of the Treasurer as trustee. The money in the accounts shall
be disbursed only as provided in the resolution.
   The trustee shall act on behalf of the holders of the agency's
bonds, or any stated percentage thereof, for the purpose of
exercising and prosecuting on behalf of the holders in the manner and
under conditions provided in the resolution authorizing the bonds.



51362.  The State Treasurer or other trustee acting on behalf of
bondholders shall have and possess all the powers necessary or
convenient for the exercise of any functions specifically set forth
in this part or incident to the general representation of bondholders
in the enforcement and protection of their rights. The Superior
Court of Sacramento County shall have jurisdiction of, and Sacramento
County shall be the appropriate venue for, any suit, action, or
proceedings by the trustee on behalf of bondholders.



51363.  Whether or not the bonds are of such form and character as
to be negotiable instruments under, or subject to, the terms of the
California Uniform Commercial Code, the bonds and any security
instruments underlying the bonds are hereby made negotiable
instruments within the meaning of, and for all the purposes of, such
code, subject only to the provisions of the bonds for registration.



51364.  In the event any of the board members or officers of the
agency whose signatures appear on any bonds or coupons shall cease to
be such board members or officers before the delivery of such bonds,
such signatures shall, nevertheless, be valid and sufficient for all
purposes, the same as if such board members or officers had remained
in office until such delivery.



51365.  Proceeds derived from the issuance of bonds or securities
and any interest or other increment derived from the investment
thereof may be used for any of the purposes of the agency, including,
but not limited to, creation of reserves, repayment of the loan from
the state made pursuant to the act enacting this division, operating
costs, other expenses, and subsidy programs.



51366.  The agency, in its discretion and pursuant to agreements
with bondholders, may create and establish one or more special
accounts in the California Housing Finance Fund, which shall be known
as "bond reserve funds," and shall pay into each such bond reserve
fund (1) any moneys appropriated and made available by the
Legislature for the purpose of such fund, (2) any proceeds of sale of
bonds to the extent provided in the resolution or resolutions of the
agency authorizing the issuance thereof, and (3) any other moneys
which the agency may make available for the purpose of such bond
reserve fund from any other source or sources. All moneys held in any
bond reserve fund, except as otherwise provided in this part, shall
be used, as required, solely for the payment of the principal of
bonds secured in whole or in part by such fund, for the sinking fund
payments authorized by this part with respect to such bonds, for the
purchase or redemption of such bonds, for the payment of interest on
such bonds, or for the payment of any redemption premium required to
be paid when such bonds are redeemed prior to maturity. However,
moneys in a bond reserve fund shall not be withdrawn therefrom at any
time in such amount as would reduce the amount of the bond reserve
fund to less than the minimum bond reserve fund requirement
established for such fund, as provided in Section 51367, except for
the purpose of making, with respect to bonds secured in whole or in
part by such fund, payment when due of principal, interest,
redemption premiums, and the sinking fund payments, as provided in
this part, for the payment of which other moneys of the agency are
not available. Any income or interest earned by, or increment to, any
bond reserve fund due to the investment thereof may be transferred
by the agency to other funds or accounts of the agency to the extent
it does not reduce the amount of the bond reserve fund below the
minimum bond reserve fund requirement for such fund.
   In computing the amount of bond reserve funds for purposes of this
section, securities in which all or a portion of such funds are
invested shall be valued at par, if purchased at par, and shall be
valued at amortized value, as such term is defined by resolution of
the agency, if purchased at other than par.



51367.  The agency shall not at any time issue bonds if, upon
issuance of the bonds, the amount in any bond reserve fund,
established pursuant to Section 51366 to secure such bonds or any
previous issuance of bonds so secured by such bond reserve fund, will
be less than the minimum bond reserve fund requirement for such
fund, unless the agency at the time of issuance of such bonds, shall
deposit in such fund from the proceeds of the bonds to be issued, or
from other sources, an amount which, together with the amount then in
such fund, will not be less than the minimum bond reserve fund
requirement for such fund. For the purposes of this chapter, the term
"minimum bond reserve fund requirement" shall mean, as of any
particular date of computation, the amount, as provided in the
resolution or resolutions of the agency authorizing the bonds with
respect to which such bond reserve fund is created, that is
established as a reserve for current or future obligations to the
bondholders.



51368.  (a) The Supplementary Bond Security Account is hereby
created in the California Housing Finance Fund. Moneys in the account
may be transferred into separate, individual accounts in the fund
which shall be known as supplementary reserve accounts, but the
amounts appropriated to the Supplementary Bond Security Account shall
be utilized to secure issuances of bonds as deemed necessary by the
agency and may also be used as provided in subdivision (d). Upon
issuance of any bonds, the agency may create a supplementary reserve
account to secure payment of the principal of, interest,
redemption-premium, and sinking fund payments on those bonds.
   (b) When all obligations secured by all supplementary reserve
accounts are retired the Supplementary Bond Security Account shall be
dissolved and all moneys therein shall be used first for repayment
to the General Fund in the State Treasury of amounts advanced to the
Supplementary Bond Security Account from the General Fund, less any
amount previously repaid on account of the advances. Remaining funds
shall be paid into the general accounts of the housing finance agency
unless otherwise obligated.
   (c) When the amount in a bond reserve fund falls below the minimum
bond reserve fund requirement for that fund and available revenues
of the agency pledged to the prescribed minimum bond reserve fund
requirement are insufficient to restore the fund, the agency shall
transfer to the bond reserve fund, from the supplementary bond
reserve account securing the bonds, the amount necessary to restore
the fund to the minimum bond reserve fund requirement. Moneys in
supplementary reserve accounts may be used to directly pay the
interest, principal and sinking fund payments on the bonds as
provided by bond resolution.
   (d) Supplementary reserve accounts may also be used to insure
mortgages to protect the value of the housing developments,
residential structures, or other housing financed under this division
that serves as real property security, in any manner permitted by
the agency.
   (e) "Bonds" as used in this section, includes taxable securities
issued pursuant to Chapter 8 (commencing with Section 51400).




51369.  The agency shall create and establish such other accounts in
the California Housing Finance Fund as may be necessary or desirable
for its agency purposes.



51370.  In addition to the authority otherwise contained in this
division to issue notes in anticipation of the sale of bonds, the
agency may issue negotiable bond anticipation notes and negotiable
construction loan notes and may renew such notes from time to time.
Bond anticipation notes may be paid from the proceeds of sale of the
bonds of the agency in anticipation of which they were issued.
Construction loan notes may be paid from the proceeds of permanent
loans. Bond anticipation notes and construction loan notes and
agreements relating thereto and the resolution or resolutions
authorizing such notes and agreements may contain any provisions,
conditions, or limitations which a bond, agreement relating thereto,
or bond resolution of the agency may contain.



51371.  The agency may provide for the issuance of refunding bonds
for the purpose of refunding any bonds then outstanding which have
been issued under the provisions of this chapter, including the
payment of any redemption premium thereon and any interest accrued or
to accrue to the date of redemption of such bonds, and for any
purpose of the agency. The issuance of such obligations, the
maturities and other details thereof, the rights of the holders
thereof, and the rights, duties, and obligations of the agency in
respect of the same shall be governed by the provisions of this
chapter which relate to the issuance of bonds, insofar as such
provisions may be appropriate therefor.



51372.  Refunding bonds issued as provided in Section 51371 may be
sold, or exchanged for outstanding bonds issued under this part and,
if sold, the proceeds thereof may be applied, in addition to any
other authorized purposes, to the purchase, redemption, or payment of
such outstanding bonds. Pending the application of the proceeds of
any such refunding bonds, with any other available moneys, (1) to the
payment of the principal, accrued interest, and any redemption
premium on the bonds being refunded, (2) to the payment of any
interest on such refunding bonds, or (3) to any expenses incurred in
connection with such refunding, such proceeds may be invested in such
obligations as are permitted under the bond resolution authorizing
the issuance of refunding bonds.



51373.  The state does hereby pledge to and agree with the holders
of any bonds issued under this part that the state will not limit or
alter the rights hereby vested in the agency to fulfill the terms of
any agreements made with the holders thereof or in any way impair the
rights and remedies of such holders until such bonds, together with
the interest thereon, with interest on any unpaid installments of
interest, and all costs and expenses in connection with any action or
proceeding by or on behalf of such holders, are fully met and
discharged. The agency is authorized to include this pledge and
agreement of the state in any agreement with the holders of such
notes or bonds.



51374.  Bonds issued under the provisions of this part shall not be
deemed to constitute a debt or liability of the state or of any
political subdivision thereof, other than the agency, or a pledge of
the faith and credit of the state or of any such political
subdivision, other than the agency, but shall be payable solely from
funds herein provided therefor. All such bonds and any prospectus or
other printed representation of the agency concerning such bonds
shall contain on the face thereof a statement to the following
effect: "Neither the faith and credit nor the taxing power of the
State of California is pledged to the payment of the principal of or
interest on this bond."
   The issuance of bonds under the provisions of this part shall not
directly or indirectly or contingently obligate the state or any
political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their
payment. Nothing contained in this section shall prevent or be
construed to prevent the agency from pledging its full faith and
credit to the payment of bonds or issue of bonds authorized pursuant
to this part.



51375.  The bonds of the agency shall be legal investments in which
all public officers and public bodies of this state, its political
subdivisions, all municipalities and municipal subdivisions, all
insurance companies and associations and other persons carrying on an
insurance business, all banks, bankers, banking institutions,
including savings and loan associations, building and loan
associations, trust companies, savings banks and savings
associations, investment companies and other persons carrying on a
banking business, all administrators, guardians, conservators,
executors, trustees and other fiduciaries, and all other persons
whatsoever who are now or may hereafter be authorized to invest in
bonds or in other obligations of the state, may properly and legally
invest funds, including capital, in their control or belonging to
them. The bonds may be used by any such private financial
institution, person, or association as security for public deposits.
The bonds are also hereby made securities which may properly and
legally be deposited with and received by all public officers and
bodies of the state or any agency or political subdivision of the
state and all municipalities and public corporations for any purpose
for which the deposit of bonds or other obligations of the state is
now or may hereafter be authorized by law, including deposits to
secure public funds.