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<br />e <br /> <br />e <br /> <br />c) collateralized mortgage obligations directly issued by a federal agency or <br />instrumentality of the United States, the underlying security for which is guaranteed <br />by an agency or instrumentality of the United States; <br /> <br />d) other obligations, the principal and interest of which are unconditionally guaranteed <br />or insured by, or backed by the full faith and credit of, this state or the United States <br />or their respective agencies and instrumentalities; and <br /> <br />e) obligations of states, agencies, counties, cities, and other political subdivisions of any <br />state rated as to investment quality by a nationally recognized investment rating firm <br />not less than A or its equivalent. <br /> <br />2. The following are not authorized investments under this section: <br /> <br />a) obligations whose payment represents the coupon payment on the outstanding <br />principal balance of the underlying mortgage-backed security collateral and pays not <br />principal (Interest only bonded); <br /> <br />b) obligations whose payment represents the principal stream of cash from the <br />underlying mortgage-backed security collateral and pays no interest (principal only <br />bonds); <br /> <br />c) collateralized mortgage obligations that have a final stated maturity date of greater <br />that 10 years; and <br /> <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. Certificates of Deposit and Share Certificates <br /> <br />1. A certificate of deposit is an authorized investment under this Subchapter if the <br />certificate is issued by a state or national bank domiciled in this state, a savings bank <br />domiciled in 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 Section 2256.009 (a), including <br />mortgage backed securities directly issued by a federal agency or instrumentality that <br />have a market value of not less than the principal amount of the certificates, but <br />excluding those mortgage backed securities of the nature described by Section <br />2256.009 (b); 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 />5 <br />