S.B. 407 Summary

• Expands Hawaii county investment authority by allowing investment in Tennessee Valley Authority notes and bonds, Federal Farm Credit System notes and bonds, and Federal Agricultural Mortgage Corporation notes and bonds.

• Adds money market funds rated AAA or equivalent by a nationally recognized rating agency to the list of permitted county investments, with maturity not to exceed five years.

• Requires county investments in improvement district bonds to be of investment grade or supported by the general obligation pledge of the county where the district is located.

• Clarifies that counties cannot enter into swap agreements, hedge agreements, or similar arrangements that would require or may require future payments by the county.

• Modifies definition of "bank savings accounts" to "federally insured savings accounts" as permitted county investment vehicles.