As used herein, the following terms shall have the following meanings:

           A. “Bonds” means bonds, notes, certificates, or other written obligations for the repayment of borrowed money, including obligations to refund any of them.

           B. “Public entities” means:

           (1) The state of Louisiana, state departments, boards, commissions, or agencies; parishes; municipalities; parish and municipal school boards and districts; levee boards and districts; port boards and commissions; port, harbor, terminal and industrial districts; drainage and land reclamation districts; all special service districts, including but not limited to road, water, sewerage, fire protection, recreation, hospital service, gas utility, and garbage districts;

           (2) All other political subdivisions, special authorities, commissions, or boards heretofore or hereafter created by or pursuant to the constitution or statutes of the state, any laws incorporated into or ratified or confirmed by constitution, or general or special charters of any parish or municipality; and

           (3) Any other unit of local government created or governed by the governing authority of any parish or municipality.

           C. “Tax-exempt bonds” means bonds issued by any state or a political subdivision or public corporation of any state, the interest on which is exempt from federal income taxes; provided that the bonds are rated at the time the investment is made by a nationally recognized rating agency in one of the two highest rating categories.

           Acts 1986, No. 66, §1, eff. June 13, 1986.