Guarantees and Assignments

Bonds or other evidence of indebtedness of any issuing entity, if not authorized for investment by other sections, are authorized under this Section if they are: (a) Unconditionally guaranteed as to principal and interest by another entity; or (b) Secured by a first mortgage and by an unconditional assignment of lease payments by another entity; or (c) Secured by a chattel mortgage or conditional sales contract and by an unconditional assignment of lease payments by another entity, and the face amount of the bonds or other evidence of indebtedness does not exceed eighty percent (80%) of the purchase price of the property securing the mortgage or contract; provided, however, that under Subsections (a), (b) and (c), the bonds or other evidences of indebtedness of the guarantor or lessor are authorized investments under §§ 8142 through 8159 inclusive. SOURCE: GC § 4225.4, subsection (c) amended by P.L. 13-056:1 (Sept. 22, 1975). Repealed and reenacted by P.L. 26-035:IV:21 (Sept. 28, 2001). Reenacted to its prior version by P.L. 26-058:XI:10 (Nov. 20, 2001). 2025 NOTE: The Compiler has corrected manifest errors in past publications of the GCA, including omissions of legislative history.