FYI The governor signed this bill changing the maturity limits on certain eligible 
investments.  This bill was supported by CMTA.

Under existing law, funds that belong to, or are in the custody
of, a local agency or local agency moneys that are not required for
the immediate necessity of the local agency may be invested in any of
several specified investments.  Existing law permits limited
purchases of bankers acceptances that do not exceed 270 days
maturity.  The purchase of prime quality commercial paper for those
instruments is also permitted if the eligible commercial paper does
not exceed 180 days maturity.
   This bill would revise the maximum maturity periods for those
investments to 180 days for bankers acceptances and 270 days for
prime quality commercial paper.


Frances Medema
Policy Analyst
League of California Cities
1400 K Street Suite 400
Sacramento, CA 95814
phone: 916/658-8218
fax:       916/658-8240
email:    [EMAIL PROTECTED]

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