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<br />d) collateralized mortgage obligations, the interest rate of which is determined by an <br />index that adjusts opposite to the changes in a market index. <br /> <br />B. Certificate of Deposit and Share Certificates <br /> <br />1. A certificate of deposit is an authorized investment under this Subsection if the certificate <br />is issued by a state or national bank domiciled in this state, a savings bank domiciled in <br />this state, or a state or federal credit union domiciled in this state and is: <br /> <br />a) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor <br />or the National Credit Union Share Insurance Fund or its successor; <br /> <br />b) secured by obligations that are described by Subsection A, 1, including mortgage <br />backed securities directly issued by a federal agency or instrumentality that have a <br />market value of not less than the principal amount of the certificates, but excluding <br />those mortgage backed securities of the nature described by Subsection A, 2; or <br /> <br />c) secured in any other manner and amount provided by law for deposits of the <br />investing entity. <br /> <br />C. Repurchase Agreements <br /> <br />1. A fully collateralized repurchase agreement is an authorized investment under this <br />Subsection if the repurchase agreement: <br /> <br />a) has a defined termination date; <br /> <br />b) is secured by obligations described by Subsection A,I, a); and <br /> <br />c) requires the securities being purchased by the entity to be pledged to the entity, held <br />in the entity's name, and deposited at the time the investment is made with the entity <br />or with a third party selected and approved by the entity; and <br /> <br />d) is placed through a primary government securities dealer, as defined by the Federal <br />Reserve, or a financial institution doing business in this state. <br /> <br />2. In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for <br />a specified time, and sell back at a future date obligations described by Subsection A, <br />I,a), at a market value at the time the funds are disbursed of not less than the principal <br />amount of the funds disbursed. The term includes a direct security repurchase agreement <br />and a reverse security repurchase agreement. <br /> <br />3. Notwithstanding any other law, the term of any reverse security repurchase agreement <br />may not exceed 90 days after the date the reverse security repurchase agreement is <br />delivered. <br /> <br />4. Money received by an entity under the terms of a reverse security repurchase agreement <br />shall be used to acquire additional authorized investments, but the term of the authorized <br />investments acquired must mature no later than the expiration date stated in the reverse <br />security repurchase agreement. <br /> <br />-_._-----,--~~~.......,.....,....',....- <br />