AI-assisted research summary: This section says public entities should have authority to invest certain bond-sale proceeds and related bond-fund monies in U.S. obligations and certain tax-exempt obligations.
PART II. SPECIAL PROVISIONS §341. Findings and determinations Proposed federal legislation imposes restrictions on the investment by public entities of the proceeds derived from the sale of their bonds, notes, certificates, or other written obligations for the repayment of borrowed monies and certain related monies held in bond funds by requiring the rebate of certain arbitrage profits to the federal government and, in certain instances, the investment of such proceeds and monies in obligations having a yield less than the yield on the applicable bond issue, including special United States Treasury Certificates of Indebtedness, Notes and Bond - State and Local Government Series; and said proposed federal legislation provides for relief from certain of the foregoing investment restrictions if the proceeds of an issue are invested in tax-exempt bonds. It is hereby found and determined that it is desirable and necessary to enable public entities to comply with proposed federal legislation restricting the investment of bond proceeds and to provide greater flexibility and opportunities for such investments, and it is the desire of the legislature to grant additional authority for public entities to invest the proceeds derived from the sale of bonds and certain related monies held in bond funds in direct obligations of, or obligations guaranteed by, the United States of America, without regard to maturity, and in certain tax-exempt obligations. Acts 1986, No. 66, §1, eff. June 13, 1986.