1. The State Controller shall notify the State Treasurer monthly of the amount of uninvested money in the State Permanent School Fund. 2. Whenever there is a sufficient amount of money for investment in the State Permanent School Fund, the State Treasurer shall proceed to negotiate for the investment of the money in: (a) United States bonds. (b) A bond, note or other obligation issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, the International Finance Corporation or the Inter-American Development Bank that: (1) Is denominated in United States dollars; (2) Is a senior unsecured unsubordinated obligation; (3) At the time of purchase has a remaining term to maturity of 5 years or less; and (4) Is rated by a nationally recognized rating service as AA or its equivalent, or better, except that investments pursuant to this paragraph may not, in aggregate value, exceed 15 percent of the total par value of the portfolio as determined at the time of purchase. (c) A bond, note or other obligation publicly issued in the United States by a foreign financial institution, corporation or government that: (1) Is denominated in United States dollars; (2) Is a senior unsecured unsubordinated obligation; (3) Is registered with the Securities and Exchange Commission in accordance with the provisions of the Securities Act of 1933, 15 U.S.C. 77a et seq., as amended; (4) Is purchased from a registered broker-dealer; (5) At the time of purchase has a remaining term to maturity of 5 years or less; and (6) Is rated by a nationally recognized rating service as A or its equivalent, or better, except that investments pursuant to this paragraph may not, in aggregate value, exceed 10 percent of the total par value of the portfolio as determined at the time of purchase. (d) Obligations or certificates of the Federal National Mortgage Association, the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation, the Federal Farm Credit Banks Funding Corporation or the Student Loan Marketing Association, whether or not guaranteed by the United States. (e) Bonds of this state or of other states. (f) Bonds of any county of the State of Nevada. (g) United States treasury notes. (h) Farm mortgage loans fully insured and guaranteed by the Farm Service Agency of the United States Department of Agriculture. (i) Loans at a rate of interest of not less than 6 percent per annum, secured by mortgage on agricultural lands in this state of not less than three times the value of the amount loaned, exclusive of perishable improvements, of unexceptional title and free from all encumbrances. (j) Money market mutual funds that: (1) Are registered with the Securities and Exchange Commission; (2) Are rated by a nationally recognized rating service as AAA or its equivalent; and (3) Invest only in securities issued or guaranteed as to payment of principal and interest by the Federal Government, or its agencies or instrumentalities, or in repurchase agreements that are fully collateralized by such securities. (k) Common or preferred stock of a corporation created by or existing under the laws of the United States or of a state, district or territory of the United States, if: (1) The stock of the corporation is: (I) Listed on a national stock exchange; or (II) Traded in the over-the-counter market, if the price quotations for the over-the-counter stock are quoted by the National Association of Securities Dealers Automated Quotation System (NASDAQ); (2) The outstanding shares of the corporation have a total market value of not less than $50,000,000; (3) The maximum investment in stock is not greater than 50 percent of the book value of the total investments of the State Permanent School Fund; (4) Except for investments made pursuant to paragraph (m), the amount of an investment in a single corporation is not greater than 3 percent of the book value of the assets of the State Permanent School Fund; and (5) Except for investments made pursuant to paragraph (m), the total amount of shares owned by the State Permanent School Fund is not greater than 5 percent of the outstanding stock of a single corporation. (l) A pooled or commingled real estate fund or a real estate security that is managed by a corporate trustee or by an investment advisory firm that is registered with the Securities and Exchange Commission, either of which may be retained by the State Treasurer as an investment manager. The shares and the pooled or commingled fund must be held in trust. The total book value of an investment made under this paragraph must not at any time be greater than 5 percent of the total book value of all investments of the State Permanent School Fund. (m) Mutual funds or common trust funds that consist of any combination of the investments listed in paragraphs (a) to (l), inclusive. (n) The limited partnerships or limited-liability companies described in NRS 355.280 . (o) Commercial paper issued by a corporation, trust or limited-liability company organized and operating in the United States or by a depository institution licensed by the United States or any state and operating in the United States that: (1) At the time of purchase has a remaining term to maturity of not more than 270 days; and (2) Is rated by a nationally recognized rating service as A-1, P-1 or its equivalent, or better, except that investments pursuant to this paragraph may not, in aggregate value, exceed 10 percent of the total par value of the portfolio as determined at the time of purchase. If the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, the State Treasurer shall take such action as he or she deems appropriate to preserve the principal value and integrity of the portfolio as a whole and report to the State Board of Finance any action taken by the State Treasurer pursuant to this paragraph. (p) Notes, bonds and other unconditional obligations for the payment of money, except certificates of deposit that are not issued by commercial banks, insured credit unions, savings and loan associations or savings banks, issued by corporations organized and operating in the United States or by depository institutions licensed by the United States or any state and operating in the United States that: (1) Are purchased from a registered broker-dealer; (2) At the time of purchase have a remaining term to maturity of not more than 5 years; and (3) Are rated by a nationally recognized rating service as A or its equivalent, or better, except that investments pursuant to this paragraph may not, in aggregate value, exceed 15 percent of the total par value of the portfolio as determined at the time of purchase. If the rating of an obligation is reduced to a level that does not meet the requirements of this paragraph, the State Treasurer shall take such action as he or she deems appropriate to preserve the principal value and integrity of the portfolio as a whole and report to the State Board of Finance any action taken by the State Treasurer pursuant to this paragraph. 3. The State Treasurer shall not invest any money in the State Permanent School Fund pursuant to paragraph (k), (l), (m), (n), (o) or (p) of subsection 2 unless the State Treasurer obtains a judicial determination that the proposed investment or category of investments will not violate the provisions of Section 9 of Article 8 of the Constitution of the State of Nevada. The State Treasurer shall contract for the services of independent contractors to manage any investments of the State Treasurer made pursuant to paragraph (k), (l), (m), (o) or (p) of subsection 2. The State Treasurer shall establish such criteria for the qualifications of such an independent contractor as are appropriate to ensure that each independent contractor has expertise in the management of such investments. 4. In addition to the investments authorized by subsection 2, the State Treasurer may make loans of money from the State Permanent School Fund to school districts pursuant to NRS 387.526 . 5. No part of the State Permanent School Fund may be invested pursuant to a reverse-repurchase agreement.
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