36-34 - Housing bonds to be legal investments, legal security and negotiable.
§ 36-34. Housing bonds to be legal investments, legal security and negotiable.
The Commonwealth and all public officers, municipal corporations, politicalsubdivisions (other than housing authorities), and public bodies, all banks,bankers, trust companies, savings banks and institutions, building and loanassociations, savings and loan associations, investment companies and otherpersons carrying on a banking business, all insurance companies, exceptdomestic life insurance companies may legally invest any sinking funds,moneys or other funds belonging to them or within their control in any bondsor other obligations issued by a housing authority pursuant to the HousingAuthorities Law, or issued by any public housing authority or agency in theUnited States, when such bonds or other obligations are secured by a pledgeof annual contributions to be paid by the United States government or anyagency thereof, and such bonds and other obligations shall be authorizedsecurity for all public deposits and shall be fully negotiable in thisCommonwealth; it being the purpose of this act to authorize any persons,firms, corporations, associations, political subdivisions, bodies andofficers, public or private, to use any funds owned or controlled by them,including (but not limited to) sinking, insurance, investment, retirement,compensation, pension funds, and funds held on deposit, for the purchase ofany such bonds or other obligations and that any such bonds or otherobligations shall be authorized security for all public deposits and shall befully negotiable in this Commonwealth; provided, however, that nothingcontained in this section with regard to legal investments shall be construedas relieving any person, firm or corporation from any duty of exercisingreasonable care in selecting securities.
(1942, p. 404; Michie Code 1942, § 3145(25).)