The board of trustees shall cause the principal of the endowment care fund to be invested and reinvested in any of the following:
(a) Securities and obligations designated by Section 53601 of the Government Code.
(b) Obligations of the United States or obligations for which the faith and credit of the United States are pledged for the payment of principal and interest. These shall not be limited to maturity dates of one year or less.
(c) Obligations issued under authority of law by any county, municipality, or school district in this state for which are pledged the faith and credit of that county, municipality, or school district for the payment of principal and interest, if within 10 years immediately preceding the investment that county, municipality, or school district was not in default for more than 90 days in the payment of principal or interest upon any legally authorized obligations issued by it.
(d) Obligations of the State of California or those for which the faith and credit of the State of California are pledged for the payment of principal and interest.
(e) Interest-bearing obligations issued by a corporation organized under the laws of any state, or of the United States, provided that they bear a Standard and Poor’s financial rating of AAA at the time of the investment.
(f) Certificates of deposit or other interest-bearing accounts in any state or federally chartered bank or savings association, the deposits of which are insured by the Federal Deposit Insurance Corporation.
(Amended by Stats. 2009, Ch. 332, Sec. 75.4. (SB 113) Effective January 1, 2010.)