Investments - Powers And Functions - Public Utilities - CA

Section § 120470

This law allows the board to invest any extra money it has, even if it's meant for specific funds like reserve or sinking funds, into a few specific types of investments. These include the board's own bonds, U.S. government securities, obligations under certain federal acts, state or municipal bonds that are legal for public fund deposits, and any investments allowed for county funds by state laws.

Subject to any agreement or covenant between the board and the holders of any of its obligations limiting or restricting classes of investments, the board may invest any surplus money in its treasury, including money in any sinking fund, reserve fund, or other fund created or established for the benefit of holders of any outstanding obligations of the board, in any of the following:

(a) Its own bonds.

(b) Treasury notes, certificates of indebtedness, bills, bonds of the United States, or any other evidence of indebtedness secured by the full faith and credit of the United States.

(c) Obligations issued pursuant to the Federal Home Loan Bank Act (12 U.S.C. Sec. 1421 et seq.) or the National Housing Act (12 U.S.C. Sec. 1701 et seq.).

(d) Treasury notes or bonds of this state, or of any public corporation, municipal corporation, public district, or political subdivision within this state which are legal security for the deposit of public funds.

(e) Any investment in which county funds may be placed pursuant to the general laws of the state.

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Section § 120471

This law section states that investments can be made by buying bonds, treasury notes, or other financial obligations, either when they're first sold or by purchasing them later from someone else.

The investment may be made by direct purchase of any issue of the bonds, treasury notes, or obligations, or part thereof, at the original sale or by the subsequent purchase of the bonds, treasury notes, or obligations.

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Section § 120472

This law states that investments like bonds or treasury notes, which are bought and held by the board, can be sold whenever needed. The money from these sales can be used to purchase new bonds, treasury notes, or other obligations as outlined in the law.

Any bonds, treasury notes, or obligations purchased and held as investments by the board may, from time to time, be sold and the proceeds reinvested in bonds, treasury notes, or obligations as provided in this article.

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Section § 120473

This law section requires that any bonds, treasury notes, or similar financial obligations that the board owns should be sold at the right times. The idea is that the money from these sales should be used for the specific purposes for which the original investments were made.

Sales of any bonds, treasury notes, or obligations purchased and held by the board shall, from time to time, be made in season so that the proceeds may be applied to the purposes for which the money with which the bonds, treasury notes, or obligations were originally purchased was placed in the treasury of the board.

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