Policy No..: MDTA 7010 Effective: August 16, 2005
MDTA, free and clear of any lien. b. Maturity for certificates of deposit shall be limited to a maximum maturity of one year.
v. Banker’s Acceptances - The MDTA may purchase Acceptances issued by a domestic bank or a federally charted domestic office of a foreign bank, which are eligible for purchase by the Federal Reserve System, if the following conditions are met: 1. The maturity is no greater than two hundred-seventy (270) days. 2. The short-term paper of the issuing bank is rated no lower than Tier- 1 by any two (2) NRSROs. 3. The issuing bank has combined net capital of a least $100 million as indicated in the most recent quarterly financial statement. 4. The amount invested in any single bank will not exceed five percent (5%) of the total funds available for investment (based on book value on the date of acquisition). vi.v. Commercial Paper - Unsecured short-term debt of U.S. corporations may be purchased if the following conditions are met: 1. Maximum maturity of two hundred seventy (270) days. 2. Maximum allocation to commercial paper is twenty percent (20%) of the total funds available for investment (based on book value on the data of acquisition). 3. Maximum allocation to a single issuer is five percent (5%) of the total funds available for investment (based on book value on the date of acquisition). 4. The issuing corporation, or its guarantor, has a net worth of at least $50 million. 5. At time of purchase, the issuing corporation, or its guarantor, has short-term debt ratings of not less than Tier-1 from any two (2) NRSROs and long-term debt ratings of not less than single-A. vii.vi. Municipal Securities - The MDTA may purchase obligations of state or local government municipal bond issuers meeting one (1) of the following two (2) conditions: 1. Full faith and credit obligations of state or local government municipal bond issuers that are rated at the time of purchase in at least the second highest rating category by at least one (1) NRSRO. 2. Legally defeased municipal obligations that are secured by an escrow containing either U.S. Government Agency Securities or U.S. Government Securities viii.vii. Money Market Mutual Funds - The MDTA may purchase shares in open ended investment funds provided such funds are: 1. Registered under the Investment Company Act of 1940. 2. Operated in accordance with SEC Rule 2A-7. Rated in the highest category by at least one (1) NRSRO. ix.viii. Maryland Local Government Investment Pool - The MDTA may invest in the Pool with prior permission of the State Treasurer’s Office as outlined in Article 95, Section 22G of the Annotated Code of Maryland. x.ix. Supranationals – Rated in the highest category by at least one (1) NRSRO and denominated in U.S. dollars, include but not currently limited to: 1. World Bank – International Bank for Reconstruction and
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