SECTION 606. Investment of Money in Certain Accounts.
Money
held in the Reserve Account shall be invested as follows:
- (a) In Government Obligations maturing within three (3)
years from the date of investment.
- (b) In repurchase agreements for Government Obligations or
investment agreements continuously secured by Government Obligations
with any bank, trust company or dealer in government bonds
which reports to, trades with and is recognized as a primary dealer
by a Federal Reserve Bank, and which has outstanding indebtedness
that is then rated by Moody's in a rating category not less than
Baa3 or P-3, if such Government Obligations are delivered to the
State Treasurer or are supported by a safekeeping receipt issued by
a depository designated by the State Treasurer and if such repurchase
and investment agreements provide that the value of the
underlying Government Obligations shall continuously be maintained
at a current market value of not less than their purchase price; or
- (c) In investment agreements with any bank or trust company
which has outstanding indebtedness or has issued a letter of
credit or other credit facility that constitutes the primary
security for indebtedness that is then rated by Moody's in a
rating category at least as high as the short-term rating category
on the Bonds;
provided, however, that at all times prior to the Fixed Rate Date
an amount equal to the Investment Requirement shall be invested
(i) in Government Obligations maturing within the Maturity
Requirement or (ii) as provided in paragraphs (b) and (c) of this
Section.
Repurchase and investment agreements contemplated under (b)
and (c) above must provide that moneys under such agreements may
be drawn at any time.
