(a) All financial arrangements made or issued pursuant to this article or subdivision (o) of Section 8670.48, including bonds or other obligations, are a legal investment for any of the following:
(1) Trust funds.
(2) Funds of insurers.
(3) Funds of savings and loan associations.
(4) Funds of banks.
(5) Funds of state agencies, cities, counties, cities and counties, or other public agencies or corporations.
(b) All financial arrangements, made or issued pursuant to this article or subdivision (o) of Section 8670.48, including bonds or other obligations, are acceptable and may be used as security for the faithful performance of any public or private trust or obligation or for the performance of any act, including the use of notes by banks as security for deposits of funds of the state and its agencies, or of any city, county, city and county, or other public agency or corporation.
(Amended by Stats. 2007, Ch. 373, Sec. 15. Effective October 10, 2007.)