A.__Government unit bonds, such as:

(1)__The bonds and other obligations of the United States or the bonds and other obligations or participation certificates issued by any agency, association, authority or instrumentality created by Congress or any executive order;

(2)__The bonds and other obligations issued or guaranteed by any state or by any instrumentality or agency of any state or by any political subdivision of any state, as long as those securities are rated within the 3 highest grades by a nationally recognized statistical rating organization;

(3)__The bonds and other obligations issued or guaranteed by this State or issued by an instrumentality or agency of this State or any political subdivision of this State that is not in default on any of its outstanding funded obligations; and

(4)__The bonds and other obligations issued or guaranteed by the Dominion of Canada or issued or guaranteed by any province or political subdivision of a province of the Dominion of Canada, as long as those securities are rated within the 3 highest grades by a nationally recognized statistical rating organization and are payable in United States funds;

B.__The bonds and other obligations of any United States corporation, as long as those securities are rated within the 3 highest grades by a nationally recognized statistical rating organization. Not more than 2% of the annual aggregate of funds handled by the payroll processor may be invested in the securities of any one such corporation, and the total of all such investments may not exceed 20% of the annual aggregate of funds handled by the payroll processor;

C.__Any of the following:

(1)__The bonds, debentures, acceptances and commercial paper of a financial institution authorized to do business within this State or incorporated under the laws of this State or the United States or of a financial institution holding company registered under