§ 27050 Eligible Securities For Deposits

• •This law says that certain safe investments, like bonds backed by the government for housing, can be used as security for public money.
• •If the government or a public official needs to keep money safe, they can use these special bonds as a guarantee.
• •These bonds are considered trustworthy because they are insured by the Federal Housing Administrator.

A city government wants to keep its extra money safe and grow it a little.

Instead of just putting the money in a regular bank, they can buy special bonds that are backed by the government for housing. These bonds are safe and allowed by this law.