1Amending the act of July 25, 1973 (P.L.217, No.53), entitled "An
2act authorizing cities of the first class and second class to
3invest all funds received and deposited with the city
4treasurer in certain commercial paper under certain terms and
5conditions," providing for investment of public corporation
6or authority funds.

7The General Assembly of the Commonwealth of Pennsylvania
8hereby enacts as follows:

9Section 1. The act of July 25, 1973 (P.L.217, No.53),
10entitled "An act authorizing cities of the first class and
11second class to invest all funds received and deposited with the
12city treasurer in certain commercial paper under certain terms
13and conditions," is amended by adding a section to read:

14Section 1.1. (a) <-A In addition to products otherwise
15authorized by law, a public corporation or municipal authority
<-16shall have the power to may invest and reinvest money of the
17public corporation or municipal authority in any of the
18following financial products<-, in addition to products and in a
19manner as permitted by law:

1(1) Obligations, participations or other instruments of
2any Federal agency, instrumentality or United States
3government-sponsored enterprise, including those issued or
4fully guaranteed as the the principal and interest by Federal
5agencies, instrumentalities or United States government-
6sponsored enterprises, if the debt obligations are rated at
7least "A" or its equivalent by at least two nationally
8recognized statistical ratings organizations.

9(2) Repurchase agreements with respect to United States
10Treasury bills or obligations, participations or other
11instruments of or guaranteed by the United States or any
12Federal agency, instrumentality or United States government-
13sponsored enterprise.

14(3) Negotiable certificates of deposit or other
15evidences of deposit, with a remaining maturity of three
16years or less, issued by a nationally or State-chartered bank
17or, a Federal or State savings and loan association or <-by a
18State-licensed branch of a foreign bank<-, except that for. For
19obligations with a maturity of one year or less, the debt
20obligations of the issuing institution or its parent <-are must
21be rated in the top short-term rating category by at least
22two nationally recognized statistical ratings organizations
23and for.<- For obligations with a maturity in excess of one
24year, the senior debt obligations of the issuing institution
25or its parent <-are must be rated at least "A" or its
26equivalent by at least two nationally recognized statistical
27ratings organizations.

28(4) Bills of exchange or time drafts drawn on and
29accepted by a commercial bank, otherwise known as bankers'
30acceptances, if the bankers' acceptances do not exceed 180

1days' maturity and the accepting bank is rated in the top
2short-term category by at least two nationally recognized
3statistical ratings organizations.

4(5) Commercial paper issued by corporations or other
5business entities organized in accordance with Federal or
6State law, with a maturity not to exceed 270 days, if the
7issuing corporation or <-business entity is rated in the top
8short-term category by at least two nationally recognized
9statistical ratings organizations.

10(6) Debt obligations, with a remaining maturity of three
11years or less, issued by corporations <-or other business 
12entities organized and operating within the United States or
13by depository institutions licensed by the United States or
14any state, if the debt obligations are rated at least "A" or
15the equivalent by at least two nationally recognized
16statistical ratings organizations.

17(7) Shares of an investment company registered under the
18Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
1980a-1 et seq.) whose shares are registered under the
20Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et
21seq.), if all of the following conditions are met:

22(i) The investments of the company are the
23authorized investments under this subsection <-or
24authorized by law.

25(ii) The investment company is managed in accordance
26with 17 CFR 270.2a-7 (relating to money market funds).

27(iii) The investment company is rated in the highest
28category by a nationally recognized rating agency.

29(b)  Other investment powers.--Nothing in subsection (a)
30shall be construed to supersede or preempt other investment

1powers of public corporations or municipal authorities as
2authorized by law.

3(c) Definition.--As used in this section, the term "public 
4corporation" shall have the same meaning as given to it in 
5section 1 of the act of May 16, 1929 (P.L.1773, No.581), 
6entitled, "An act to supplement an act approved the twentieth 
7day of April, one thousand eight hundred and seventy-four 
8(Pamphlet Laws, sixty-five), entitled 'An act to regulate the 
9manner of increasing the indebtedness of municipalities; to 
10provide for the redemption of the same; and to impose penalties 
11for illegal increase thereof,' by authorizing the sale of 
12property purchased by a public corporation out of funds provided 
13by increase of indebtedness of such corporation; and providing 
14for the disposition of the funds realized from such sale."

15Section 2. This act shall take effect in 60 days.