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 public corporation or municipal
15authority shall have the power to invest and reinvest money of
16the public corporation or municipal authority in any of the
17following financial products, in addition to products and in a
18manner as permitted by law:

19(1) Obligations, participations or other instruments of

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

8(2) Repurchase agreements with respect to United States
9Treasury bills or obligations, participations or other
10instruments of or guaranteed by the United States or any
11Federal agency, instrumentality or United States government-
12sponsored enterprise.

13(3) Negotiable certificates of deposit or other
14evidences of deposit, with a remaining maturity of three
15years or less, issued by a nationally or State-chartered bank
16or a Federal or State savings and loan association or by a
17State-licensed branch of a foreign bank, except that for
18obligations with a maturity of one year or less, the debt
19obligations of the issuing institution or its parent are
20rated in the top short-term rating category by at least two
21nationally recognized statistical ratings organizations and
22for obligations with a maturity in excess of one year, the
23senior debt obligations of the issuing institution or its
24parent are rated at least "A" or its equivalent by at least
25two nationally recognized statistical ratings organizations.

26(4) Bills of exchange or time drafts drawn on and
27accepted by a commercial bank, otherwise known as bankers'
28acceptances, if the bankers' acceptances do not exceed 180
29days' maturity and the accepting bank is rated in the top
30short-term category by at least two nationally recognized

1statistical ratings organizations.

2(5) Commercial paper issued by corporations or other
3business entities organized in accordance with Federal or
4State law, with a maturity not to exceed 270 days, if the
5issuing corporation or entity is rated in the top short-term
6category by at least two nationally recognized statistical
7ratings organizations.

8(6) Debt obligations, with a remaining maturity of three
9years or less, issued by corporations organized and operating
10within the United States or by depository institutions
11licensed by the United States or any state, if the debt
12obligations are rated at least "A" or the equivalent by at
13least two nationally recognized statistical ratings
14organizations.

15(7) Shares of an investment company registered under the
16Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §
1780a-1 et seq.) whose shares are registered under the
18Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et
19seq.), if all of the following conditions are met:

20(i) The investments of the company are the
21authorized investments under this subsection or
22authorized by law.

23(ii) The investment company is managed in accordance
24with 17 CFR 270.2a-7 (relating to money market funds).

25(iii) The investment company is rated in the highest
26category by a nationally recognized rating agency.

27(b)  Other investment powers.--Nothing in subsection (a)
28shall be construed to supersede or preempt other investment
29powers of public corporations or municipal authorities as
30authorized by law.

1(c) Definition.--As used in this section, the term "public 
2corporation" shall have the same meaning as given to it in 
3section 1 of the act of May 16, 1929 (P.L.1773, No.581), 
4entitled, "An act to supplement an act approved the twentieth 
5day of April, one thousand eight hundred and seventy-four 
6(Pamphlet Laws, sixty-five), entitled 'An act to regulate the 
7manner of increasing the indebtedness of municipalities; to 
8provide for the redemption of the same; and to impose penalties 
9for illegal increase thereof,' by authorizing the sale of 
10property purchased by a public corporation out of funds provided 
11by increase of indebtedness of such corporation; and providing 
12for the disposition of the funds realized from such sale."

13Section 2. This act shall take effect in 60 days.