355.171 - Additional authorized investments for counties, cities and school districts; exceptions.
355.171 Additional authorized investments for counties, cities and school districts; exceptions.
1. Except as otherwise provided in this section, a board of county commissioners, a board of trustees of a county school district or the governing body of an incorporated city may purchase for investment:
(a) Notes, bonds and other unconditional obligations for the payment of money issued by corporations organized and operating in the United States that:
(1) Are purchased from a registered broker-dealer;
(2) At the time of purchase have a remaining term to maturity of no more than 5 years; and
(3) Are rated by a nationally recognized rating service as “A” or its equivalent, or better.
(b) Collateralized mortgage obligations that are rated by a nationally recognized rating service as “AAA” or its equivalent.
(c) Asset-backed securities that are rated by a nationally recognized rating service as “AAA” or its equivalent.
2. With respect to investments purchased pursuant to paragraph (a) of subsection 1:
(a) Such investments must not, in aggregate value, exceed 20 percent of the total portfolio as determined on the date of purchase;
(b) Not more than 25 percent of such investments may be in notes, bonds and other unconditional obligations issued by any one corporation; and
(c) If the rating of an obligation is reduced to a level that does not meet the requirements of that paragraph, the obligation must be sold as soon as possible.
3. Subsections 1 and 2 do not:
(a) Apply to a:
(1) Board of county commissioners of a county whose population is less than 100,000;
(2) Board of trustees of a county school district in a county whose population is less than 100,000; or
(3) Governing body of an incorporated city whose population is less than 100,000,
Ê unless the purchase is effected by the State Treasurer pursuant to his or her investment of a pool of money from local governments or by an investment adviser who is registered with the Securities and Exchange Commission and approved by the State Board of Finance.
(b) Authorize the investment of money administered pursuant to a contract, debenture agreement or grant in a manner not authorized by the terms of the contract, agreement or grant.
(Added to NRS by 2001, 597)