MS HB1355

Amends Mississippi Code Section 27-105-5 to define "investment quality" for bonds deposited with the State Treasurer as security for public funds.

Defines "investment quality" to mean the obligor has adequate capacity to meet financial commitments even if adverse economic conditions may weaken that capacity in the future.

Applies the investment quality requirement to bonds under Tennessee Valley Authority obligations, Mississippi political subdivisions, other states' general obligations, and surety bonds.

Bonds rated as substandard by supervisory authorities or recognized national rating agencies remain ineligible for pledging as security by qualified state depositories.

Takes effect July 1, 2018.