1. When state money is placed in escrow, the escrow agent is authorized to invest that money in:
(a) United States Government securities.
(b) United States Postal Service obligations.
(c) Federal National Mortgage Association obligations whose maturity date is before the end of the escrow period.
(d) 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.
Ê The interest from the securities must be credited to the proper state agency.
2. The escrow agent shall not invest state money pursuant to a reverse-repurchase agreement.