|
<br />GENERAL GOVERNMENT
<br />.Ch. 2256
<br />
<br />,.."(1) cash management and [IXed incomefunds spunsored by organiza-,
<br />tions exempt from federal income taxation under Section 501 (f), Internal" ,,' ,
<br />Revenue Code of 1986 (26 U.S.C.'Section 501 (f)), and its subsequent,
<br />amendments;' .'
<br />
<br />'; "(2) negotiable, certificates of deposit issued by a bank that has a
<br />certificate of deposit rating of at least] or the equivalent by anationally ,
<br />recognized credit, rating agency or that is associated with a, holding
<br />company having a commercial paper rating of at least A-I, P-I, or the
<br />equivalent by a nationally recognized credit rating agency;. and
<br />
<br />'''(3) corporate bonds, debentures, or similar debt obligations rated by a
<br />,nationally recognized investment rating firm in one of the two highest
<br />long-term rating categories, without regard to gradations' within" th6s~
<br />categories
<br />, '
<br />',":(c) In this section: ..
<br />
<br />',"(1) "Bond proceeds" includes but is not lImited to proceeds fro'm the
<br />selie' o(bonds and reserves and funds maintained for debt serviCe pur~
<br />, ' - . , . " ,.' " ,. ':"
<br />poses.
<br />
<br />'''(2) "Prime domestic bankers' acceptances" means a bankers' accep-
<br />tance with a stated maturity of 270 daysot 'less' from the date of'its
<br />issuance that will be, in accordance with its terms, liquidated in full at
<br />maturity; that is eligible for collateral for borrowing from, a Federal
<br />Reserve Bank, and that is accepted by a' bank organizedand,existing.,
<br />under the 'laws of the United States or any state, the short-term obli-
<br />gations of which (or of a bank holdingcompanyofwhiChthe'barik is the
<br />largest subsidiary) are rated at least A-I; P-I, or theequiVi.Zlent"byatlea:s~
<br />one nationally recognized credit rating agency.
<br />
<br />"(3) "Repurchase agreement" means a simultaneous agreement ,to
<br />buy, hold for a specified time, and then sell back at a future 'date,
<br />obligations described by Subsection (aX 1) of this section, ,the principal
<br />and interest of which are guaranteed by the United States or any of its
<br />agencies, in market value of not less than the principal amount of the
<br />funds disbursed. The term' includes 'direct security repurchase agree-
<br />ments and reverse security repurchase ,agreements.
<br />"...' ' " . " -','
<br />"(4) "Public funds investment pool" means an entity created to invest,
<br />public funds jointly on behalf of the entities that participate in the pool
<br />and whose investment 'objeCtives in order of priority are: first, safety of '
<br />principell; second, liquidity; and third, income. " "
<br />'. \. " . .,' , .,'
<br />"(d) In addition to the investments described by Subsection (a) of this ,
<br />section, an entity listed in that subsection may, in accordance with this
<br />Act, purchase, sell, and invest its fimds and funds under its contr'ol'in a
<br />no-load money. market mutual fund that is regulated by the federal
<br />Securities and Exchange. Commission with a dollar-wldghted average'
<br />suited., maturity of 90 days or less and whose ,investment objectives
<br />include seeking to maintain a stable net asset value of $1 pershate.' No
<br />entity listed in Subsection (a) of this, section is authorized by ihis:Act'to
<br />, investdn the,~aggregate more, than-SO percent of its ,monthly., average' fund.
<br />", balance,' excluding bond proceeds"in,money ,market.~mutual'.funds,'l1e""
<br />, 30~
<br />
<br />
<br />. - '.~H,_~' ....,.,,' '-.-, ":""~ '.' ....-.. ""'7"" ',' .. '-~-'.~ ", '. ". "'.'.'
<br />
<br />.' :,.." .,...~,., .'"'' '",'.~'" .', :":...:....~.~:.~~':":...,-'..:'""?:'"~:--.-";7':;-..~~ ..'
<br />
<br />
<br />'t:
<br />
<br />
<br />:....,.,'.
<br />
|