For purposes of the Public Entities Pooled Investment Act:

(1) Bank means a state-chartered or federally chartered bank which has a main chartered office in this state, any branch thereof in this state, or any branch in this state of a state-chartered or federally chartered bank which maintained a main chartered office in this state prior to becoming a branch of such state-chartered or federally chartered bank;

(2) Capital stock financial institution means a capital stock state building and loan association, a capital stock federal savings and loan association, a capital stock federal savings bank, or a capital stock state savings bank, which has a main chartered office in this state, any branch thereof in this state, or any branch in this state of a capital stock financial institution which maintained a main chartered office in this state prior to becoming a branch of such capital stock financial institution;

(3) Eligible entity means any governmental, public, or quasi-public entity, joint public agency created pursuant to the Joint Public Agency Act, or joint entity created pursuant to the Interlocal Cooperation Act, located in the state, including, but not limited to, an entity designated as a political subdivision, vested with taxing authority, or whose membership is wholly comprised by such entities and funds created by such entities. Eligible entity does not include the State of Nebraska or any department, division, office, board, commission, or other agency of the state, or any court, constitutional office, or elected or appointed officer of the state;

(4) Eligible investment means:

(a) Obligations, including letters of credit, of any agency or instrumentality of the United States, including bonds, debentures, or notes issued by the Federal Home Loan Bank System;

(b) Direct obligations of or other obligations the principal of and interest on which are guaranteed by the United States or its agencies or instrumentalities, including collateralized mortgage obligations and obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the full faith and credit of the United States;

(c) Direct obligations of the state, its agencies, and its instrumentalities receiving an investment quality rating by a nationally recognized investment rating firm not less than A or its equivalent at the time of purchase;

(d) Obligations of other states, agencies, counties, cities, and political subdivisions of any state receiving an investment quality rating by a nationally recognized investment rating firm not less than A or its equivalent at the time of purchase;

(e) Commercial paper, if such commercial paper:

(i) Is issued by a United States corporation;

(ii) Has a stated maturity of two hundred seventy days or fewer from its date of issuance;

(iii) Is rated in the highest short-term rating quality category by at least two nationally recognized statistical rating organizations at the time of purchase;

(iv) Is limited to no more than fifty percent of the total funds available for investment by a local government investment pool at the time of purchase; and

(v) Is limited to no more than five percent of the total funds available for investment by a local government investment pool being invested in the commercial paper of a single issuer;

(f) Money market mutual funds whose shares are sold without commissions or other sales charges unrelated to fund expenses, that have a fixed net asset value of one dollar, and that are comprised of obligations of the United States, its agencies, or its instrumentalities;

(g) Fully collateralized repurchase agreements if such agreements:

(i) Have a defined termination date;

(ii) Are secured by a combination of cash and obligations of the United States, its agencies, or its instrumentalities;

(iii) Require securities purchased by the trust or cash held by the trust to be pledged to the trust, held in the trust's name, and deposited at the time the investment is made with the trust or with a third party selected and approved by the trust; and

(iv) Are invested through a primary government securities dealer, as defined by the Board of Governors of the Federal Reserve System, or a financial institution; and

(h) Certificates of deposit and time deposit open accounts in banks, capital stock financial institutions, or qualifying mutual financial institutions;

(5) Local government investment pool means an investment pool or trust created pursuant to the laws of this state, including, but not limited to, the Interlocal Cooperation Act, for the purpose of pooling and investing the funds of two or more eligible entities; and

(6) Qualifying mutual financial institution has the same meaning as in section 77-2365.01.