SB178 Summary

• Amends Section 11-81-21 of the Alabama Code to expand authorized investment options for municipal and county funds that are not presently needed for other purposes.

• Adds two new investment categories: commercial paper with the highest credit rating at the time of purchase and banker's acceptances.

• Maintains existing authorized investments including U.S. Treasury obligations, federal agency obligations, qualified bank deposits, pre-refunded public obligations, and certain investment company securities.

• Requires that at least 65% of any common trust fund or investment company portfolio consist of previously authorized investments, with the remaining 35% limited to mortgage-related securities and repurchase agreements.

• Becomes effective immediately upon passage and approval by the Governor.