§ 159B-18. Trust funds; investment authority.
§ 159B‑18. Trust funds; investment authority.
(a) Notwithstanding any other provisions of law to the contrary,all moneys received pursuant to the authority of this Chapter, whether asproceeds from the sale of bonds or as revenues, shall be deemed to be trustfunds to be held and applied solely as provided in this Chapter. The resolutionauthorizing the bonds of any issue or the trust agreement securing such bondsmay provide that any of such moneys may be temporarily invested and reinvestedpending the disbursements thereof in such securities and other investments asshall be provided in such resolution or trust agreement, and shall provide thatany officer with whom, or any bank or trust company with which, such moneysshall be deposited shall hold and apply the same for the purposes hereof,subject to such regulation as this Chapter and such resolution or trustagreement may provide.
(b) Any moneys received pursuant to the authority of thisChapter and any other moneys available to a joint agency for investment may beinvested:
(1) As provided in subsection (a) of this section;
(2) As provided in G.S. 159‑30, except that:
a. A joint agency may also invest, in addition to theobligations enumerated in G.S. 159‑30(c)(2), in bonds, debentures, notes,participation certificates, or other evidences of indebtedness issued, or theprincipal of and the interest on which are unconditionally guaranteed, whetherdirectly or indirectly, by any agency or instrumentality of, or corporationwholly owned by, the United States of America.
b. For purposes of G.S. 159‑30(c)(12), a joint agency mayalso enter into repurchase agreements with respect to, in addition to theobligations enumerated in G.S. 159‑30(c)(12):
1. Obligations of the Federal Financing Bank, the Federal FarmCredit Bank, the Bank for Cooperatives, the Federal Intermediate Credit Bank,the Federal Land Banks, the Federal Home Loan Banks, the Federal Home LoanMortgage Corporation, Fannie Mae, the Government National Mortgage Association,the Federal Housing Administration, the Farmers Home Administration, and theUnited States Postal Service;
2. Bonds, debentures, notes, participation certificates, orother evidences of indebtedness issued, or the principal of and the interest onwhich are unconditionally guaranteed, whether directly or indirectly, by anyagency or instrumentality of, or corporation wholly owned by, the United Statesof America;
3. Mortgage‑backed pass‑through securitiesguaranteed by the Government National Mortgage Association, the Federal HomeLoan Mortgage Corporation, or Fannie Mae;
4. Direct or indirect obligations which are collateralized byor represent beneficial ownership interests in mortgage‑backed pass‑throughsecurities guaranteed by the Government National Mortgage Association, theFederal Home Loan Mortgage Corporation, Fannie Mae; and
5. Direct or indirect obligations, trust certificates, or othersimilar instruments which are both: (i) guaranteed by the Government NationalMortgage Association, the Federal Home Loan Mortgage Corporation, or FannieMae; (ii) collateralized by or represent beneficial ownership interests inmortgage‑backed pass‑through securities which are guaranteed by theGovernment National Mortgage Association, the Federal Home Loan MortgageCorporation, or Fannie Mae; including, but not limited to, Real Estate MortgageInvestment Conduit Certificates; and (iii) for purposes of the second provisoof G.S. 159‑30(c)(12)a., the financial institution serving either astrustee or as fiscal agent for a joint agency holding the obligations subjectto the repurchase agreement may also be the provider of the repurchaseagreement if the obligations that are subject to the repurchase agreement areheld in trust by the trustee or fiscal agent for the benefit of the joint agency;
(3) In mortgage‑backed pass‑through securitiesguaranteed by the Government National Mortgage Association, the Federal HomeLoan Mortgage Corporation, or Fannie Mae;
(4) In direct or indirect obligations which are collateralizedby or represent beneficial ownership interests in mortgage‑backed pass‑throughsecurities guaranteed by the Government National Mortgage Association, theFederal Home Loan Mortgage Corporation, or Fannie Mae; and
(5) In direct or indirect obligations, trust certificates, orother similar instruments which are (i) guaranteed by the Government NationalMortgage Association, the Federal Home Loan Mortgage Corporation, or FannieMae, and (ii) collateralized by or represent beneficial ownership interests inmortgage‑backed pass‑through securities which are guaranteed by theGovernment National Mortgage Association, the Federal Home Loan MortgageCorporation, or Fannie Mae, including, but not limited to, Real Estate MortgageInvestment Conduit Certificates. (1975, c. 186, s.1; 1991 (Reg. Sess., 1992), c. 888, s. 5; 1993, c. 445, s. 1; 1995, c. 412, s.14; 2001‑487, s. 14(n).)