Section 49. Authority obligations as legal investments and legal security for deposits by public officers

The  state,  its   subdivisions,
  municipalities,  and  all  other public bodies, and all public officers,
  all banks, bankers, trust companies,  savings  banks  and  institutions,
  building and loan associations, saving and loan associations, investment
  companies  and  other  persons  carrying  on  a  banking  business,  all
  insurance companies, insurance associations and other  persons  carrying
  on  an insurance business, and all executors, administrators, guardians,
  trustees and other fiduciaries may legally  invest  funds  belonging  to
  them  or  within  their  control  in:    (a)  any bonds, notes and other
  obligations of an authority when they are (1) secured by a pledge of the
  revenues of a project, and additionally secured by a pledge of  periodic
  subsidies  or  of  annual  contributions to be paid to an authority by a
  government, or (2) secured  by  a  first  mortgage  lien  not  exceeding
  sixty-six and two-thirds per centum of the value of the property covered
  thereby,  or  (3)  secured  by  an agreement between the authority and a
  government pursuant to which the authority agrees  to  borrow  from  the
  government,  and the government agrees to lend to the authority prior to
  the maturity of such bonds, notes or other obligations of the authority,
  monies in an amount which (together with any  other  monies  irrevocably
  committed  to  the  payment  of  principal of or interest on such bonds,
  notes or other obligations) will be sufficient to pay the  principal  of
  such  bonds,  notes  or  other  obligations  with  interest  thereon  to
  maturity, which monies under the terms of such agreement are required to
  be used by the authority for the purpose of paying the principal of  and
  interest on such bonds, notes or other obligations at their maturity, or
  (4)  guaranteed  by a municipality as to principal and interest; (b) any
  notes issued pursuant to  and  in  conformity  with  the  provisions  of
  subdivision  two  of  section forty-one of this chapter under a contract
  with the state  containing  a  covenant  for  the  payment  of  periodic
  subsidies  as  provided  in  subdivision (b) of section seventy-six-a of
  this chapter; or (c) any bonds, notes and other  obligations  issued  by
  any  public  housing  authority or agency in the United States or in the
  commonwealth of Puerto Rico when such bonds, notes or other  obligations
  are  secured  by  a  pledge  of  the  revenues of the housing project or
  projects for which the bonds, notes or other obligations are issued, and
  additionally secured by a pledge of annual contributions to be  paid  by
  the  United  States  government or any agency thereof. Such bonds, notes
  and other obligations issued by an authority pursuant  to  this  chapter
  are also hereby made securities which may be deposited with and shall be
  received  by  all  public  officers  and  bodies  of  this state and all
  municipalities, governments, and public corporations of this state,  for
  any  purpose for which the deposit of bonds or other obligations of this
  state is now or may be hereafter authorized or required.