§ 2-185. Guidelines.

(a)

The assets of the village may be invested, as provided in R.S. 33:2955(A)(1), in the following:

(1)

Direct U.S. Treasury obligations, the principal and interest of which are fully guaranteed by the U.S. government.

(2)

Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by federal agencies and provided such obligations are backed by the full faith and credit of the United States, including U.S. Export Import Bank, Farmers Home Administration, Federal Financing Bank, Federal Housing Administration Debentures, General Services Administration, Government National Mortgage Association (guaranteed mortgage-backed bonds and guaranteed pass-through obligations), U.S. Maritime Administration (guaranteed Title XI financing), and U.S. Department of Housing and Urban Development.

(3)

Bonds, debentures, notes, or other evidence of indebtedness issued or guaranteed by U.S. government instrumentalities, which are federally sponsored, including Federal Home Loan Bank System, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, Student Loan Marketing Association, and Resolution Funding Corporation.

(4)

Direct security repurchase agreements of any federal bank entry only securities enumerated in subsections (a)(1) through (a)(3) of this section. The term "direct security repurchase agreement" means an agreement under which the political subdivision buys, holds for a specified time, and then sells back those securities and obligations enumerated in subsections (a)(1) through (a)(3) of this section.

(5)

Time certificates of deposit of state banks organized under the laws of the state, or national banks having their principal offices in the state, savings accounts or shares of savings and loan associations and savings banks, or share accounts and share certificates accounts of federally or state chartered credit unions issuing time certificates of deposit; provided that the rate of interest paid for time certificates of deposit shall be not less than 50 base points below the prevailing market interest rate on direct obligations of the U.S. Treasury with a similar length of maturity. Funds invested in accordance with this subsection shall not exceed at any time the amount insured by the Federal Deposit Insurance Corporation in any one bank, or in any one savings and loan association, or by the National Credit Union Administration in any one credit union, unless the uninsured portion is collateralized by the pledge of securities in the manner provided in R.S. 39:1221.

(6)

Mutual or trust fund institutions which are registered with the Securities and Exchange Commission under the Securities Act of 1933 and the Investment Act of 1940, and which have underlying investments consisting solely of and limited to securities of the U.S. government or its agencies.

(7)

Funds invested in accordance with the provisions of R.S. 33:2955(A)(1)(d) shall not exceed at any time the amount insured by the Federal Deposit Insurance Corporation in any one banking institution, or in any one savings and loan association, or National Credit Union Administration, unless the uninsured portion is collateralized by the pledge of securities in the manner provided in R.S. 39:1221.

(8)

Guaranteed investment contracts issued by a bank, financial institution, insurance company, or other entity having one of the two highest short-term rating categories of either Standard & Poor's Corporation or Moody's Investors Service, provided that no such investment may be made except in connection with a financing program for political subdivisions, which financing program is approved by the state bond commission and offered by a public trust having the state as its beneficiary, provided further that no such investment shall be for a term longer than 18 months, and provided further that any such guaranteed investment contract shall contain a provision providing that in the event the issuer of the guaranteed investment contract is at any time no longer rated in either of the two highest short-term rating categories of Standard & Poor's Corporation or Moody's Investors Service, the investing unit of local government may either be released from the guaranteed investment contract without penalty, or be entitled to require that the guaranteed investment provider collateralize the guaranteed investment contract with any bonds or other obligations which as to principal and interest constitute direct general obligations of, or are unconditionally guaranteed by, the United States of America, including obligations set forth in subsections (a) and (b) of this section to the extent unconditionally guaranteed by the United States of America.

(9)

Investment grade (A-1/P-1) commercial paper of domestic United States corporations.

(b)

Notes.

(1)

The list of investments in subsection (a) of this section is an exclusive one.

(2)

Investment of funds in mutual or trust fund institutions shall be limited to 25 percent of the monies considered available for investment as provided by R.S. 33:2955(A)(2).

(3)

The attorney general has rendered an opinion that only mutual funds created as a Massachusetts business trust are acceptable investments (Op. Atty. Gen. 880546(A)).

(c)

Cash and cash equivalents are comprised of daily cash balances above the day-to-day needs and funds set aside for portfolio strategy reasons. Short-term investments of cash and cash equivalents may be placed in:

(1)

Obligations of the U.S. Treasury, federal agencies, or U.S. government instrumentalities (as provided herein) with maturities of less than two years.

(2)

Time certificates of deposit, as provided herein.

(3)

Money market mutual funds, as provided herein.

(4)

The Louisiana Asset Management Pool, Inc.

(Code 2004, § 27.4)