Policy No..: MDTA 7010 Effective: August 16, 2005
Development (IBRD) 2. International Finance Corporation (IFC) 3. Inter-American Development Bank (IADB) 4. African Development Bank (AFDB) 5. Asian Development Bank (ASIA)
xi.x. The CFO may at any time determine in writing that the MDTA temporarily, for a period determined by the CFO, shall not purchase any security or class of securities authorized in this Policy Statement. VI. Maturity Restrictions a. Policy Statement 6. MDTA’s investment objectives include preservation of principal, liquidity, and longer-term total return performance considerations. The market value of securities in the MDTA’s portfolio may fluctuate due to changes in market conditions. MDTA shall manage investments to ensure adequate funds are available when needed. i. In addition to the limitations and requirements of applicable provisions of the Annotated Code of Maryland and applicable guidelines established by the State Treasurer and GASB: 1. Funds shall be invested at all times in keeping with the daily and seasonal pattern of the MDTA’s cash balances, as well as any other special factors or needs, in order to assure the availability of liquid funds on a timely basis. ii. Cash flow projections will be monitored and updated on an ongoing basis by MDTA personnel and reported regularly to the investment managers(s). iii. On a periodic basis, a determination will be made, based on cash flow projections and total return performance considerations, regarding the appropriate maturity structures of the portfolios. The final maturity of investments held in each portfolio at the time of settlement may not exceed: 1. Operating Accounts - 1 Year. 2. Bond Service Accounts - 1 Year. 3. Operating Reserve - 5 Years 4.3. Capitalized Interest Accounts - Maturities must precede or coincide with coupon payments dates. 5.4. Capital Accounts – 5 Years, or longer if the maturity precedes or coincides with the expected need for funds and only with prior approval of the CFO. 6.5. General – 15 Years, or longer with prior approval of the CFO. 7.6. Maintenance & Operating Reserve - 15 Years. 8.7. Debt Services Reserves - 15 Years. VII. Prohibited Securities, Transactions and Activities a. Policy Statement 7. The following securities, transactions and activities are prohibited: i. Reverse repurchase agreements. ii. Short sales (selling a specific security before it has been legally purchased). iii. Borrowing funds for the sole purpose of reinvesting the proceeds of such
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