(a) Except as provided in subdivision (c), all surplus money in the Disability Fund may be invested solely in securities set forth in subdivision (b) of this section, and all interest or earnings therefrom shall be deposited in the Disability Fund.
(b) Eligible securities for the investment of surplus money shall be:
(1) Bonds or interest-bearing notes or obligations of the United States, or those for which the faith and credit of the United States are pledged for the payment of principal and interest.
(2) Bonds of this state, or those for which the faith and credit of this state are pledged for the payment of principal and interest.
(3) Bonds of any county, city, metropolitan water district, municipal utility district, or school district of this state.
(4) Bonds, consolidated bonds, collateral trust debentures, consolidated debentures, or other obligations issued by federal land banks or federal intermediate credit banks established under the Federal Farm Loan Act.
(5) Debentures and consolidated debentures issued by the Central Bank for Cooperatives and banks for cooperatives established under the Farm Credit Act of 1933.
(6) Bonds or debentures of the Federal Home Loan Bank Board established under the Federal Home Loan Bank Act.
(7) Bonds of any federal home loan bank established under the Federal Home Loan Bank Act.
(8) Stock, bonds, debentures and other obligations of the Federal National Mortgage Association established under the National Housing Act.
(9) Bonds, notes, and other obligations issued by the Tennessee Valley Authority under the Tennessee Valley Authority Act.
(c) This section shall not apply during the period of any election under Section 16470 of the Government Code for investment of surplus money in the Disability Fund under the provisions of the Surplus Money Investment Fund.
(Amended by Stats. 1980, Ch. 1025, Sec. 20.)