SUMMARY--Revises provisions governing investment of proceeds from bonds. (BDR 30-1176)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to bonds; revising certain provisions governing the investment of proceeds from bonds issued by the state and local governments; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 NRS 349.304 is hereby amended to read as follows:
349.304 1. The commission, subject to any contractual limitations from time to time imposed upon the state by any act or resolution authorizing the issuance of the state's outstanding securities or by any trust indenture or other proceedings appertaining thereto, may cause to be invested and reinvested any proceeds of taxes, any pledged revenues and any proceeds of bonds or other state securities issued hereunder in [federal] :
(a) Federal securities and other securities of the Federal Government . [and]
(b) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
The commission may cause such proceeds of taxes, revenues, state securities, federal securities , [and] other securities of the Federal Government and money market mutual funds to be deposited in any trust bank or trust banks within or without or both within and without this state and secured in such manner and subject to such terms and conditions as the commission may determine, with or without the payment of any interest on such deposit, including , without limitation , time deposits evidenced by certificates of deposit.
2. Any federal securities, other securities of the Federal Government , shares in money market mutual funds and any such certificates of deposit thus held may, from time to time, be sold , and the proceeds may be so reinvested or redeposited as provided in this section.
3. Sales and redemptions of any federal securities, other securities of the Federal Government , shares in money market mutual funds and such certificates of deposit thus held [shall,] must, from time to time, be made in season so that the proceeds may be applied to the purposes for which the money with which such securities , shares in money market mutual funds and certificates of deposit were originally acquired was placed in the state treasury.
4. Any gain from any such investments or reinvestments may be credited to any fund or account pledged for the payment of any state securities issued hereunder, including any reserve therefor, or any other fund or account appertaining to a project or any facilities or the state's general fund, subject to any contractual limitations in any proceedings appertaining to outstanding state securities.
5. It is lawful for any commercial bank incorporated under the laws of this state which may act as depository of the proceeds of any securities issued hereunder, any federal securities , [and] other securities of the Federal Government and shares in money market mutual funds owned by the state, any proceeds of taxes, any pledged revenues and any [moneys] money otherwise appertaining to a project or any facilities, or any combination thereof, to furnish such indemnifying bonds or to pledge such federal securities, such other securities issued by the Federal Government, such shares in money market mutual funds and such other securities as may be required by the commission.
Sec. 2. NRS 349.630 is hereby amended to read as follows:
349.630 The director shall adopt regulations for:
1. Investment and reinvestment of the proceeds from the sale of bonds, including , but not limited to:
(a) Bonds or other obligations of the United States of America.
(b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States of America.
(c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.
(d) Obligations issued or guaranteed by any state of the United States of America, or any political subdivision of any state.
(e) Prime commercial paper.
(f) Prime finance company paper.
(g) Bankers' acceptances drawn on and accepted by commercial banks.
(h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States of America or by any person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.
(i) Certificates of deposit issued by commercial banks, including banks domiciled outside the United States of America.
(j) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
2. Receiving, holding and disbursing of proceeds of the sale of bonds by one or more banks or trust companies located within or out of this state.
Sec. 3. NRS 349.921 is hereby amended to read as follows:
349.921 1. The bonds issued pursuant to NRS 349.900 to 349.929, inclusive, must be structured to provide a significant degree of safety as to repayment of principal and interest upon their maturity.
2. A portion of the proceeds of the bonds must be placed in a fund for the retirement of the bonds. The money in this fund must be invested in:
(a) Direct obligations of, or obligations the payment of the principal of and the interest of which are unconditionally guaranteed by the United States; [or]
(b) Obligations issued or guaranteed as to principal and interest by any agency or instrumentality of the United States [.] ; or
(c) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
3. The amount of the deposit in the fund for the retirement of bonds must be determined on the basis of the yields available from the securities in which that money may be invested on the date of the deposit and calculated so as to produce, without reinvestment, a balance in the fund sufficient to pay the principal amount due on the bonds at maturity.
Sec. 4. NRS 349.924 is hereby amended to read as follows:
349.924 The director shall adopt regulations for:
1. Investment and reinvestment of the proceeds designated for the account for venture capital from the sale of bonds, including , but not limited to:
(a) Bonds or other obligations of the United States.
(b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States.
(c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the Congress of the United States.
(d) Obligations issued or guaranteed by any state of the United States, or any political subdivision of any state.
(e) Prime commercial paper.
(f) Prime finance company paper.
(g) Bankers' acceptances drawn on and accepted by commercial banks.
(h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States or by any person controlled or supervised by and acting as an instrumentality of the United States pursuant to authority granted by the Congress of the United States.
(i) Certificates of deposit issued by commercial banks, including banks domiciled outside of the United States.
(j) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
2. Receiving, holding and disbursing of proceeds of the sale of bonds by one or more banks or trust companies located within or outside of this
state.
This section does not expand the authority for investing the proceeds of bonds placed in the fund for the retirement of bonds.
Sec. 5. Chapter 350 of NRS is hereby amended by adding thereto a new section to read as follows:
The governing body of a municipality whose population is 50,000 or more, subject to any contractual limitations from time to time imposed upon the municipality by any ordinance authorizing the issuance of outstanding securities of the municipality or by any trust indenture or other proceedings appertaining thereto, may cause to be invested and reinvested, except as otherwise provided in NRS 350.698, any proceeds of taxes, any pledged revenues and any proceeds of bonds or other municipal securities issued hereunder for which the amount of the principal of the original issuance was $40,000,000 or more in an investment contract that is collateralized with securities issued by the Federal Government or agencies of the Federal Government if:
1. The collateral has a market value of at least 102 percent of the amount invested and any accrued unpaid interest thereon;
2. The municipality receives a security interest in the collateral that is fully perfected and the collateral is held in custody for the municipality or its trustee by a third-party agent of the municipality which is a commercial bank authorized to exercise trust powers;
3. The market value of the collateral is determined not less frequently than weekly and, if the ratio required by subsection 1 is not met, sufficient additional collateral is deposited with the agent of the municipality to meet that ratio within 2 business days after the determination; and
4. The party with whom the investment contract is executed is a commercial bank, or that party or a guarantor of the performance of that party is:
(a) An insurance company which has a rating on its ability to pay claims of not less than "Aa2" by Moody's Investors Service, Inc., or "AA" by Standard and Poor's Ratings Services, or their equivalent; or
(b) An entity which has a credit rating on its outstanding long-term debt of not less than "A2" by Moody's Investors Service, Inc., or "A" by Standard and Poor's Ratings Services, or their equivalent.
Sec. 6. NRS 350.658 is hereby amended to read as follows:
350.658 1. The governing body, subject to any contractual limitations from time to time imposed upon the municipality by any ordinance authorizing the issuance of the municipality's outstanding securities or by any trust indenture or other proceedings appertaining thereto, may cause to be invested and reinvested any proceeds of taxes, any pledged revenues and any proceeds of bonds or other municipal securities issued hereunder in [federal] :
(a) Federal securities and other securities of the Federal Government . [and]
(b) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
The governing body may cause such proceeds of taxes, revenues, municipal securities, federal securities , [and] other securities of the Federal Government and money market mutual funds to be deposited in any trust bank or trust banks within or without or both within and without this state and secured in such manner and subject to such terms and conditions as the governing body may determine, with or without the payment of any interest on such deposit, including , without limitation , time deposits evidenced by certificates of deposit.
2. Any federal securities, other securities of the Federal Government, shares in money market mutual funds and any such certificates of deposit thus held may, from time to time, be sold , and the proceeds may be so reinvested or redeposited as provided in this section.
3. Sales and redemptions of any federal securities, other securities of the Federal Government, shares in money market mutual funds and such certificates of deposit thus held [shall,] must, from time to time, be made in season so that the proceeds may be applied to the purposes for which the money with which such securities , shares in money market mutual funds and certificates of deposit were originally acquired was placed in the municipal treasury.
4. Any gain from any such investments or reinvestments may be credited to any fund or account pledged for the payment of any municipal securities issued hereunder, including any reserve therefor, or any other fund or account appertaining to a project or any facilities or the municipality's general fund, subject to any contractual limitations in any proceedings appertaining to outstanding municipal securities.
5. It is lawful for any commercial bank incorporated under the laws of this state which may act as depository of the proceeds of any securities issued hereunder, any federal securities , [and] other securities of the Federal Government and shares in money market mutual funds owned by the municipality, any proceeds of taxes, any pledged revenues, and any [moneys] money otherwise appertaining to a project or any facilities, or any combination thereof, to furnish such indemnifying bonds and to pledge such federal securities, such other securities issued by the Federal Government, such shares in money market funds and such other securities as may be required by the governing body.
Sec. 7. NRS 244A.721 is hereby amended to read as follows:
244A.721 1. The county may provide that proceeds from the sale of bonds and special funds from the revenues of the project [shall] must be invested and reinvested in such securities and other investments, whether or not any such investment or reinvestment is authorized under any other law of this state, as may be provided in the proceedings under which the bonds are authorized to be issued, including , but not limited to:
(a) Bonds or other obligations of the United States of America.
(b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States of America.
(c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.
(d) Obligations issued or guaranteed by any state of the United States of America, or any political subdivision of any such state.
(e) Prime commercial paper.
(f) Prime finance company paper.
(g) Bankers' acceptances drawn on and accepted by commercial banks.
(h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States of America or by any person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.
(i) Certificates of deposit issued by commercial banks, including banks domiciled outside of the United States of America.
(j) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
2. The county may also provide that such proceeds or funds or investments and the payments payable under the lease, the agreement of sale or the financing agreement [shall] must be received, held and disbursed by one or more banks or trust companies located within or out of this state.
Sec. 8. NRS 268.540 is hereby amended to read as follows:
268.540 1. Unless prohibited by its charter, the city may provide that proceeds from the sale of bonds and special funds from the revenues of the project be invested and reinvested in such securities and other investments, whether or not any such investment or reinvestment is authorized under any other law of this state, as provided in the proceedings under which the bonds are authorized to be issued, including , but not limited to:
(a) Bonds or other obligations of the United States of America.
(b) Bonds or other obligations, the payment of the principal and interest of which is unconditionally guaranteed by the United States of America.
(c) Obligations issued or guaranteed as to principal and interest by any agency or person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.
(d) Obligations issued or guaranteed by any state of the United States of America, or any political subdivision of any such state.
(e) Prime commercial paper.
(f) Prime finance company paper.
(g) Bankers' acceptances drawn on and accepted by commercial banks.
(h) Repurchase agreements fully secured by obligations issued or guaranteed as to principal and interest by the United States of America or by any person controlled or supervised by and acting as an instrumentality of the United States of America pursuant to authority granted by the Congress of the United States of America.
(i) Certificates of deposit issued by commercial banks, including banks domiciled outside of the United States of America.
(j) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
2. The city may also provide that such proceeds or funds or investments and the payments payable under the lease, the agreement of sale or the financing agreement be received, held and disbursed by one or more banks or trust companies located within or out of this state.
Sec. 9. NRS 279.280 is hereby amended to read as follows:
279.280 Every municipality [shall have] has all the powers necessary or convenient to carry out and effectuate the purposes and provisions of NRS 279.010 to 279.380, inclusive, including the following powers in addition to others herein granted:
1. To undertake and carry out urban renewal projects within its area of operation; to make and execute contracts and other instruments necessary or convenient to the exercise of its powers under NRS 279.010 to 279.380, inclusive; and to disseminate slum clearance and urban renewal information.
2. To provide or to arrange or contract for the furnishing or repair by any person or agency, public or private, of services, privileges, works, streets, roads, public utilities or other facilities for or in connection with an urban renewal project; to install, construct and reconstruct streets, utilities, parks, playgrounds [,] and other public improvements; and to agree to any conditions that it may deem reasonable and appropriate attached to federal financial assistance and imposed pursuant to federal law relating to the determination of prevailing salaries or wages or compliance with labor standards, in the undertaking or carrying out of an urban renewal project, and to include in any contract let in connection with such a project provisions to fulfill such of those conditions as it may deem reasonable and appropriate.
3. Within its area of operation, to enter into any building or property in any urban renewal area in order to make inspections, surveys, appraisals, soundings or test borings, and to obtain an order for this purpose from a court of competent jurisdiction in the event entry is denied or resisted; to acquire, by purchase, lease, option, gift, grant, bequest, devise, eminent domain or otherwise, any real property, or personal property for its administrative purposes, together with any improvements thereon; to hold, improve, clear or prepare for redevelopment any such property; to mortgage, pledge, hypothecate or otherwise encumber or dispose of any real property; to insure or provide for the insurance of any real or personal property or operations of the municipality against any risks or hazards, including the power to pay premiums on any such insurance; and to enter into any contracts necessary to effectuate the purposes of NRS 279.010 to 279.380, inclusive. No statutory provision with respect to the acquisition, clearance or disposition of property by public bodies [shall] may restrict a municipality, or other public body exercising powers hereunder, in the exercise of such functions with respect to an urban renewal project, unless the legislature [shall] specifically so [state.] states.
4. To invest any urban renewal project funds held in reserves or sinking funds, or any such funds not required for immediate disbursement [, in property or securities in which savings banks may legally invest funds subject to their control; and to] in:
(a) Obligations issued by the United States Postal Service or the Federal National Mortgage Association, whether or not the payment of principal and interest thereon is guaranteed by the Federal Government.
(b) Bonds or other obligations issued by a municipality pursuant to the provisions of NRS 279.010 to 279.380, inclusive, or by an urban renewal agency or a housing authority vested with urban renewal project powers pursuant to NRS 279.360, if the bonds or other obligations are secured by an agreement between the issuer and the Federal Government in which the issuer agrees to borrow from the Federal Government and the Federal Government agrees to lend to the issuer before the maturity of the bonds or other obligations, money in an amount that, together with any other money irrevocably committed to the payment of interest on the bonds or other obligations, will suffice to pay the principal of the bonds or other obligations with interest to maturity thereon, which money under the terms of the agreement is required to be used for the purpose of paying the principal and the interest on the bonds or other obligations at their maturity.
(c) Bonds or other obligations issued by a redevelopment agency created pursuant to NRS 279.382 to 279.685, inclusive, or a legislative body that has elected to exercise the powers granted to an agency pursuant to NRS 279.382 to 279.685, inclusive.
(d) Bonds or other securities issued pursuant to the provisions of NRS 349.150 to 349.364, inclusive, 350.500 to 350.720, inclusive, or 396.809 to 396.885, inclusive, and section 5 of this act.
(e) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
5. To redeem such bonds as have been issued pursuant to NRS 279.310 at the redemption price established therein or to purchase such bonds at less than redemption price, all such bonds so redeemed or purchased to be canceled.
[5.] 6. To borrow money and to apply for and accept advances, loans, grants, contributions and any other form of financial assistance from the Federal Government, the state, county, or other public body, or from any sources, public or private, for the purposes of NRS 279.010 to 279.380, inclusive, and to give such security as may be required and to enter into and carry out contracts in connection therewith. A municipality may include in any contract for financial assistance with the Federal Government for an urban renewal project such conditions imposed pursuant to federal laws as the municipality may deem reasonable and appropriate and which are not inconsistent with the purposes of NRS 279.010 to 279.380, inclusive.
[6.] 7. Within its area of operation, to make or have made all surveys and plans necessary to the carrying out of the purposes of NRS 279.010 to 279.380, inclusive, and to contract with any person, public or private, in making and carrying out such plans and to adopt or approve, modify and amend such plans. Such plans may include, without limitation:
(a) A general plan for the locality as a whole.
(b) Urban renewal plans.
(c) Preliminary plans outlining urban renewal activities for neighborhoods to embrace two or more urban renewal areas.
(d) Plans for carrying out a program of voluntary or compulsory repair and rehabilitation of buildings and improvements.
(e) Plans for the enforcement of state and local laws, codes and regulations relating to the use of land and the use and occupancy of buildings and improvements and to the compulsory repair, rehabilitation, demolition or removal of buildings and improvements.
(f) Appraisals, title searches, surveys, studies [,] and other plans and work necessary to prepare for the undertaking of urban renewal projects.
The municipality is authorized to develop, test and report methods and techniques, and carry out demonstrations and other activities, for the prevention and the elimination of slums and urban blight and to apply for, accept and utilize grants of funds from the Federal Government for such purposes.
[7.] 8. To prepare plans for the relocation of persons, including families, business concerns and others, displaced by an urban renewal project [,] and to make relocation payments to or with respect to such persons for moving expenses and losses of property for which reimbursement or compensation is not otherwise made, including the making of such payments financed by the Federal Government.
[8.] 9. To appropriate such funds and make such expenditures as may be necessary to carry out the purposes of NRS 279.010 to 279.380, inclusive, and to levy taxes and assessments for such purposes; to zone or rezone any part of the municipality or make exceptions from building regulations; and to enter into agreements with a housing authority or an urban renewal agency vested with urban renewal project powers under NRS 279.360, which agreements may extend over any period, notwithstanding any provision or rule of law to the contrary, respecting action to be taken by [such] the municipality pursuant to any of the powers granted by NRS 279.010 to 279.380, inclusive.
[9.] 10. To close, vacate, plan or replan streets, roads, sidewalks, ways or other places; and to plan or replan any part of the municipality.
[10.] 11. Within its area of operation, to organize, coordinate and direct the administration of the provisions of NRS 279.010 to 279.380, inclusive, as they apply to [such] the municipality in order that the objective of remedying slum and blighted areas and preventing the causes thereof within [such] the municipality may be most effectively promoted and achieved, and to establish such new office or offices of the municipality or to reorganize existing offices in order to carry out [such purpose] the objective most effectively.
[11.] 12. To exercise all or any part or combination of powers herein granted.
Sec. 10. NRS 279.360 is hereby amended to read as follows:
279.360 1. A municipality may itself exercise its urban renewal project powers, as set forth in subsection 2, or may, if the local governing body by resolution determines such action to be in the public interest, elect to have such powers exercised by the urban renewal agency, created by NRS 279.370, or by the housing authority, if one exists or is subsequently established in the community. In the event the local governing body makes such determination, the urban renewal agency or the housing authority, as the case may be, [shall be] is vested with all of the urban renewal project powers in the same manner as though all such powers were conferred on such agency or authority instead of the municipality. If the local governing body does not elect to make such determination, the municipality in its discretion may exercise its urban renewal project powers through a board or commissioner or through such officers of the municipality as the local governing body may by resolution determine.
2. A local governing body which has elected to have its urban renewal powers exercised by the urban renewal agency or by the housing authority, if any, may at any time, by resolution, rescind such election. A rescission pursuant to this subsection does not affect any contract or other obligation incurred by the separate agency while exercising the powers vested by such election.
3. As used in this section, the term "urban renewal project powers" [shall include] includes the rights, powers, functions and duties of a municipality under NRS 279.010 to 279.380, inclusive, except the following powers:
(a) To determine an area to be a slum or blighted area or combination thereof and to designate such area as appropriate for an urban renewal project and to hold any public hearings required with respect thereto.
(b) To approve urban renewal plans and modifications thereof.
(c) To establish a general plan for the locality as a whole.
(d) To formulate a workable program under NRS 279.250.
(e) To make the determinations and findings provided for in NRS 279.240 and 279.260, and subsection 4 of NRS 279.270.
(f) To issue general obligation bonds.
(g) To appropriate funds, to levy taxes and assessments, and to exercise other powers provided for in subsection [8] 9 of NRS 279.280.
Sec. 11. NRS 279.480 is hereby amended to read as follows:
279.480 An agency may:
1. Invest any money held in reserves or sinking funds, or any money not required for immediate disbursement, in [property or securities in which savings banks may legally invest money subject to their control.] :
(a) Obligations issued by the United States Postal Service or the Federal National Mortgage Association, whether or not the payment of principal and interest thereon is guaranteed by the Federal Government.
(b) Bonds or other obligations issued by a municipality pursuant to the provisions of NRS 279.010 to 279.380, inclusive, or by an urban renewal agency or a housing authority vested with urban renewal project powers pursuant to NRS 279.360, if the bonds or other obligations are secured by an agreement between the issuer and the Federal Government in which the issuer agrees to borrow from the Federal Government and the Federal Government agrees to lend to the issuer before the maturity of the bonds or other obligations, money in an amount that, together with any other money irrevocably committed to the payment of interest on the bonds or other obligations, will suffice to pay the principal of the bonds or other obligations with interest to maturity thereon, which money under the terms of the agreement is required to be used for the purpose of paying the principal and the interest on the bonds or other obligations at their maturity.
(c) Bonds or other obligations issued by a redevelopment agency created pursuant to NRS 279.382 to 279.685, inclusive, or a legislative body that has elected to exercise the powers granted to an agency pursuant to the provisions of NRS 279.382 to 279.685, inclusive.
(d) Bonds or other securities issued pursuant to the provisions of NRS 349.150 to 349.364, inclusive, 350.500 to 350.720, inclusive, or 396.809 to 396.885, inclusive.
(e) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
(f) Any other investment in which a city may invest pursuant to NRS 355.170.
2. Purchase its bonds at a price not more than their principal amount and accrued interest. All bonds so purchased [shall] must be canceled.
Sec. 12. NRS 315.470 is hereby amended to read as follows:
315.470 An authority may:
1. Invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in [liquid securities in which savings banks may legally invest funds subject to their control.] :
(a) Obligations issued by the United States Postal Service or the Federal National Mortgage Association, whether or not the payment of principal and interest thereon is guaranteed by the Federal Government.
(b) Bonds or other obligations issued by a municipality pursuant to NRS 279.010 to 279.380, inclusive, or by an urban renewal agency or a housing authority vested with urban renewal project powers pursuant to NRS 279.360, if the bonds or other obligations are secured by an agreement between the issuer and the Federal Government in which the issuer agrees to borrow from the Federal Government and the Federal Government agrees to lend to the issuer before the maturity of the bonds or other obligations, money in an amount that, together with any other money irrevocably committed to the payment of interest on the bonds or other obligations, will suffice to pay the principal of the bonds or other obligations with interest to maturity thereon, which money under the terms of the agreement is required to be used for the purpose of paying the principal and the interest on the bonds or other obligations at their maturity.
(c) Bonds or other obligations issued by a redevelopment agency created pursuant to NRS 279.382 to 279.685, inclusive, or a legislative body that has elected to exercise the powers granted an agency pursuant to NRS 279.382 to 279.685, inclusive.
(d) Bonds or other securities issued pursuant to the provisions of NRS 349.150 to 349.364, inclusive, 350.500 to 350.720, inclusive, or 396.809 to 396.885, inclusive.
(e) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
2. Redeem its bonds at the redemption price established therein or purchase its bonds at less than such redemption price . [; all] All bonds so redeemed or purchased [shall] must be canceled.
Sec. 13. NRS 353.280 is hereby amended to read as follows:
353.280 1. When state money is placed in escrow, the escrow agent is authorized to invest that money in :
(a) United States Government securities . [,]
(b) United States Postal Service obligations . [or]
(c) Federal National Mortgage Association obligations whose maturity date is before the end of the escrow period.
(d) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
The interest from the securities must be credited to the proper state agency.
2. The escrow agent shall not invest state money pursuant to a reverse-repurchase agreement.
Sec. 14. NRS 355.060 is hereby amended to read as follows:
355.060 1. The state controller shall notify the state treasurer monthly of the amount of uninvested money in the state permanent school fund.
2. Whenever there is a sufficient amount of money for investment in the state permanent school fund, the state treasurer shall proceed to negotiate for the investment of the money in:
(a) United States bonds;
(b) Obligations or certificates of the Federal National Mortgage Association, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal Farm Credit Banks Funding Corporation or the Student Loan Marketing Association, whether or not guaranteed by the United States;
(c) Bonds of this state or of other states;
(d) Bonds of any county of the State of Nevada;
(e) United States treasury notes;
(f) Farm mortgage loans fully insured and guaranteed by the Farmers Home Administration of the United States Department of Agriculture; [or]
(g) Loans at a rate of interest of not less than 6 percent per annum, secured by mortgage on agricultural lands in this state of not less than three times the value of the amount loaned, exclusive of perishable improvements, of unexceptional title and free from all encumbrances [.] ; or
(h) Money market mutual funds that:
(1) Are registered with the Securities and Exchange Commission;
(2) Are rated by a nationally recognized rating service as "AAA" or its equivalent; and
(3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities.
3. No part of the state permanent school fund may be invested pursuant to a reverse-repurchase agreement.
Sec. 15. NRS 355.165 is hereby amended to read as follows:
355.1651. The local government pooled long-term investment account is hereby created. The account must be administered by the state treasurer.
2. All of the provisions of NRS 355.167 apply to the local government pooled long-term investment account.
3. In addition to the investments which are permissible pursuant to subsection 3 of NRS 355.167, the treasurer may invest the money in the local government pooled long-term investment account in [mutual] :
(a) Mutual funds which:
[(a)] (1) Are registered with the Securities and Exchange Commission;
[(b)] (2) Are rated in the highest rating category by at least one nationally recognized rating service; and
[(c)] (3) Invest only in securities issued by the Federal Government or agencies of the Federal Government or in repurchase agreements fully collateralized by such securities.
(b) An investment contract that is collateralized with securities issued by the Federal Government or agencies of the Federal Government if:
(1) The collateral has a market value of at least 102 percent of the amount invested and any accrued unpaid interest thereon;
(2) The treasurer receives a security interest in the collateral that is fully perfected and the collateral is held in custody for the state by a third-party agent of the state which is a commercial bank authorized to exercise trust powers;
(3) The market value of the collateral is determined not less frequently than weekly and, if the ratio required by subparagraph (1) is not met, sufficient additional collateral is deposited with the agent of this state to meet that ratio within 2 business days after the determination; and
(4) The party with whom the investment contract is executed is a commercial bank, or that party or a guarantor of the performance of that party is:
(I) An insurance company which has a rating on its ability to pay claims of not less than "Aa2" by Moody's Investors Service, Inc., or "AA" by Standard and Poor's Ratings Services, or their equivalent; or
(II) An entity which has a credit rating on its outstanding long-term debt of not less than "A2" by Moody's Investors Service, Inc., or "A" by Standard and Poor's Ratings Services, or their equivalent.
4. In addition to the reasonable charges against the account which the state treasurer may assess pursuant to subsection 7 of NRS 355.167, the state treasurer may, in the case of a local government pooled long-term investment account, assess the costs:
(a) Associated with a calculation of any rebate of arbitrage profits which is required to be paid to the Federal Government by 26 U.S.C. § 148; and
(b) Of contracting with qualified persons to assist in the:
(1) Calculation of any rebate of arbitrage profits which is required to be paid to the Federal Government by 26 U.S.C. § 148; and
(2) Administration of the account.
5. In addition to the quarterly computations of interest to be reinvested for or paid to each participating local government pursuant to subsection 8 of NRS 355.167, the state treasurer may, in the case of a local government pooled long-term investment account, compute and reinvest or pay the interest more frequently. He may also base his computations on the amount of interest accrued rather than the amount received.
6. The treasurer may establish one or more separate subaccounts in the local government pooled long-term investment account for identified investments that are made for and allocated to specific participating local governments.
Sec. 16. This act becomes effective upon passage and approval.