(a) Bonds of Domestic Corporations. Bonds, debentures, notes and other evidences of indebtedness of any corporation, or corporations created or existing under the laws of the United States, or of any of the states or territories of the United States, or the District of Columbia, which are not in default either as to principal or interest, provided that:

(1) such bonds or other evidence of indebtedness are rated within the four (4) highest categories of two (2) nationally recognized and published rating services which have been approved by the Board and the investment agent; or

(2) in case such bonds or other evidence of indebtedness are not so rated by two (2) such services,

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investments in such lesser-ranked domestic corporate bonds shall not exceed eight percent (8%) of the Fund at cost; unless the net earnings available for fixed charges over a prior period of five (5) fiscal years next preceding the date of investment have averaged per year and during either of the last two (2) years have been, after depreciation and after taxes, not less than:

(A) two (2) times its average annual fixed charges over the same period, in the case of any public utility company;

(B) one and one-half (1½) times its average annual fixed charges over the same period, in the case of any finance company; or

(C) three (3) times its average annual fixed charges over the same period, in the case of any other company.

(3) No more than two percent (2%) of the Fund at cost shall be invested in the obligations of any one (1) domestic corporation or other single domestic issuing entity described in this Subsection.

(b) Bonds of Foreign Corporations. Bonds, debentures, notes and other evidences of indebtedness of any corporation, or corporations created or existing under the laws of nations other than the United States which are not in default either as to principal or interest; provided, that the investment agent in its informed opinion, determines that such an investment would be employed by a prudent person acting in a like capacity and familiar with such matters would use in the investment of a fund of like character and with like aims. No more than one and one- half percent (1½%) of the Fund at cost shall be invested in the obligations of any one (1) foreign corporation or other single issuing foreign entity described in this Subsection.

(c) No investment shall be made in any one (1) issue described in Subsections (a) and (b) of this Section in an amount in excess of ten percent (10%) of such issues.

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(d) Other Securities in the U.S. Aggregate Bond Index. Bonds, debentures, notes and other evidences of indebtedness which are denominated in U.S. dollars, investment-grade, fixed- rate and of the quality of fixed income securities covered by the U.S. Aggregate Bond Index.

(e) Bonds authorized under this Section may be purchased and held in investment funds authorized under § 8158, or in exchange-traded funds authorized under § 8158.1; such purchases shall be excluded from the limitations of § 8158(e) and § 8158.1(b).

SOURCE: GC § 4225.11; repealed and reenacted by P.L. 22-006:3 (Mar.
29, 1993). Amended by P.L. 30-120:2 (Apr. 1, 2010), P.L. 32-086:13 (Nov. 27, 2013).