360.120.  Approved investments. — 1.  The authority may invest any of its funds in:

  (1)  Bonds, notes, certificates of indebtedness, treasury bills, or other securities constituting direct obligations of, or obligations the principal of and interest on which are fully guaranteed by, the United States, including evidences of a direct ownership interest in future interests or principal payments on obligations issued or guaranteed by the United States, or securities which represent an undivided interest in such obligations, which obligations are held in a custody account by a custodian satisfactory to the authority;

  (2)  Bonds, notes or other obligations of any state of the United States or of any political subdivision of any state, which at the time of their purchase rated in either of the two highest rating categories by a nationally recognized rating service;

  (3)  Certificates of deposit or time deposits constituting direct obligations of any bank, bank holding company, savings and loan association, trust company, financial institution or other credit provider, except that investments may be made only in certificates of deposit or time deposits which are:

  (a)  Insured by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Credit Corporation, if then in existence;

  (b)  Continuously and fully secured by securities described in subdivisions (1) and (2) of this subsection, which have a market value, exclusive of accrued interest, at all times at least equal to the principal amount of such certificates of deposit or time deposits; or

  (c)  Issued by a bank, bank holding company, savings and loan association, trust company, financial institution or other credit provider whose outstanding unsecured long-term debt is rated at the time of issuance in either of the two highest rating categories by a nationally recognized rating service;

  (4)  Repurchase agreements with any bank, bank holding company, savings and loan association, trust company, financial institution or other credit provider organized under the laws of the United States or any state, which are secured by any one or more of the securities described in subdivision (1) or (2) of this subsection and which have a market value, exclusive of accrued interest, at all times at least equal to the principal amount of such repurchase agreement;

  (5)  Investment agreements constituting an obligation of a bank, bank holding company, savings and loan association, trust company, financial institution or other credit provider whose outstanding unsecured long-term debt is rated at the time of such agreement in either of the two highest rating categories by a nationally recognized rating service; or

  (6)  Short-term discount obligations of the Federal National Mortgage Association and Government National Mortgage Association.  

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All such securities so purchased shall mature or be redeemable at the option of the holder on a date or dates prior to the time when, in the judgment of the authority, the funds so invested will be required for expenditure.  The express judgment of the authority as to the time when any funds will be required for expenditure or be redeemable shall be final and conclusive.

  2.  The provisions of this section shall not apply to the investment of proceeds of any revenue bonds issued by the authority which proceeds are held by a trustee or escrow agent under a trust indenture, escrow agreement or similar agreement in a construction fund, acquisition fund, project fund or other similar such fund for disbursement to or on behalf of an identified educational institution or health institution pursuant to a loan agreement with the authority or in a debt service reserve fund or escrow fund established with such proceeds.