Sec. 10a-238. Investment of funds.
Sec. 10a-238. Investment of funds. Except as otherwise provided in subsection
(c) of section 10a-237, the authority may invest any funds in (1) direct obligations of
the United States or the state of Connecticut, (2) obligations as to which the timely
payment of principal and interest is fully guaranteed by the United States or the state
of Connecticut, and Connecticut's Short-Term Investment Fund, (3) obligations of the
United States Export-Import Bank, Farmers Home Administration, Federal Financing
Bank, Federal Housing Administration, General Services Administration, United States
Maritime Administration, United States Department of Housing and Urban Development, Farm Credit System, Resolution Funding Corporation, federal intermediate credit
banks, federal banks for cooperatives, federal land bank, federal home loan banks, Federal National Mortgage Association, Government National Mortgage Association and
the Student Loan Marketing Association, (4) certificates of deposit or time deposits
constituting direct obligations of any bank in the state, provided that investments may
be made only in those certificates of deposit or time deposits in banks which are insured
by the Federal Deposit Insurance Corporation if then in existence, (5) withdrawable
capital accounts or deposits of federal chartered savings and loan associations which
are insured by the Federal Savings and Loan Insurance Corporation, (6) other obligations
which are legal investments for savings banks in the state, (7) investment agreements
with financial institutions whose long-term obligations are rated within the top two
rating categories of any nationally recognized rating service or of any rating service
recognized by the Banking Commissioner or whose short-term obligations are rated
within the top two rating categories of any nationally recognized rating service or of
any rating service recognized by the Banking Commissioner, or investment agreements
fully secured by obligations of, or guaranteed by, the United States or agencies or instrumentalities of the United States, and (8) securities or obligations which are legal investments for savings banks in Connecticut, subject to repurchase agreements in the manner
in which such agreements are negotiated in sales of securities in the market place, provided the authority shall not enter into any such agreement with any securities dealer
or bank acting as a securities dealer unless such dealer or bank is included in the list of
primary dealers, as prepared by the Federal Reserve Bank of New York, effective at the
time of the agreement. Any such securities may be purchased at the offering or market
price thereof at the time of such purchase. All such securities so purchased shall mature
or be redeemable on a date or dates prior to the time when, in the judgment of the
authority, the funds so invested will be required for expenditure. The express judgment
of the authority as to the time when any funds shall be required for expenditure or be
redeemable is final and conclusive.
(P.A. 82-313, S. 18, 28; P.A. 88-266, S. 29, 46; P.A. 93-96, S. 3; P.A. 03-84, S. 11; May Sp. Sess. P.A. 04-2, S. 64.)
History: P.A. 88-266 inserted references to obligations of state in Subdivs. (1) and (2) and added Subdiv. (6) re investment
"in other obligations which are legal investments for savings banks in the state"; P.A. 93-96 amended Subdiv. (2) to
allow investment in Connecticut's Short-Term Investment Fund and added Subdivs. (7) and (8); P.A. 03-84 changed
"commissioner of banking" to "Banking Commissioner" in Subdiv. (7) and made a technical change, effective June 3,
2003; May Sp. Sess. P.A. 04-2 replaced "including" with "and" in Subdiv. (2), added institutions to the list of those in
whose obligations the authority may invest in Subdiv. (3) and qualified the type of investment agreements with financial
institutions in whose obligations the authority may invest in Subdiv. (7), effective May 12, 2004, and applicable to any
pledge, lien or security interest of this state or any political subdivision of this state in existence on October 1, 2003, or
created after that date.