6860

GOVERNMENT CODE
SECTION 6860




6860.  Notwithstanding any restrictions on investments contained in
any laws, farm loan bonds, consolidated farm loan bonds, collateral
trust debentures, consolidated debentures, or other obligations
issued under the Federal Farm Loan Act approved July 17, 1916, as
amended (Title 12 U.S.C. Sections 636 to 1012 inclusive, and Sections
1021 to 1129 inclusive), the Farm Credit Act of 1933, as amended
(Title 12 U.S.C. Sections 1131 to 1138f inclusive), and the Farm
Credit Act of 1971 (Title 12 U.S.C. Sections 2001 to 2259 inclusive),
are a lawful investment for all public funds, including but not
limited to all funds of the state and of every local agency as
defined by Section 53600 of this code, and for the funds of savings
banks, insurance companies, executors, administrators, guardians,
conservators, receivers, and trustees of every kind and nature.
Whenever any bonds may by law be used as security for the performance
of any act, such bonds and debentures may be so used. This section
applies to farm loan bonds and consolidated farm loan bonds issued by
federal land banks, consolidated collateral trust debentures and all
other debentures issued by federal intermediate credit banks,
debentures issued by the Cental Bank for Cooperatives and
consolidated debentures issued by banks for cooperatives. It is the
purpose of this section to authorize any person, political
subdivision, body, or officer, public or private, to use any funds
owned or controlled by him or it, including sinking, insurance,
investment, retirement, compensation, pension, and trust funds, and
funds held on deposit, for the purchase of any such bonds,
debentures, or other obligations. Nothing in this section relieves
any person from any duty of exercising reasonable care in selecting
securities.