Local government: investments.

Existing law regulates the investment of public funds by local agencies, as defined. Existing law authorizes the legislative body of a local agency, as specified, that has money in a sinking fund or in its treasury not required for immediate needs to invest the money as it deems wise or expedient in certain securities and financial instruments. In this regard, existing law authorizes investment in a mortgage passthrough security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond that has a maximum of 5 years' maturity. Existing law further requires that these investments be issued by an issuer rated "A" or its equivalent or better for the issuer's debt as provided by a nationally recognized statistical rating organization (NRSRO) and rated in a rating category of "AA" or its equivalent or better by a NRSRO. This bill would revise the maximum 5-year maturity requirement to instead require that the securities have a maximum remaining security of 5 years or less. The bill also would eliminate the requirement that the securities issuer be rated "A" or its equivalent or better for the issuer's debts as provided by an NRSRO.