Wherever, by statute of this State, collateral is required as security for the deposit of public or other funds, or deposits are required to be made with any public official or department, or an investment of capital or surplus, or a reserve or other fund, is required to be maintained consisting of designated securities, the notes, and bonds secured by mortgages insured, and debentures issued, by the Federal Housing Administrator, and obligations of national mortgage associations are eligible securities for such purposes.
Chapter 2Securities for Deposit
Section § 27050
This law explains that when California statutes require collateral as security for public funds, require funds to be deposited with officials or departments, or require maintaining investment reserves, certain securities can be used. These include notes and bonds secured by mortgages insured by the Federal Housing Administrator, debentures issued by them, and obligations from national mortgage associations.
collateral requirements public funds security deposit with officials investment reserves notes and bonds mortgages insured Federal Housing Administrator debentures national mortgage associations eligible securities investment of capital surplus requirements designated securities capital reserves mortgage-backed securities
