Ї 615.5140 Eligible investments.

Type: FCA Regulation
PART 615 - FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, AND FUNDING OPERATIONS
Subpart E - Investment Management

Ї 615.5140 Eligible investments.
(a) You may hold only the following types of investments listed in the Investment Eligibility Criteria Table. These investments must be denominated in United States dollars.

Investment Eligibility Criteria Table

Asset Class	Final Maturity Limit	NRSRO Credit Rating	Other Requirements	Investment Portfolio Limit
(1) Obligations of the United States З Treasuries З Agency securities (except mortgage securities) З Other obligations fully insured or guaranteed by the United States, its agencies, instrumentalities and corporations	None	NA	None	None
(2) Municipal Securities
З General obligations	10 years	One of the highest two	None	None
З Revenue bonds	5 years	Highest	At the time of purchase, you must document that the issue is actively traded in an established secondary market	15%
(3) International and Multilateral Development Bank Obligations	None	None	The United States must be a voting shareholder	None
(4) Money Market Instruments
З Federal funds	1 day or continuously callable up to 100 days	One of the two highest short-term	None	None
З Negotiable certificates of deposit	1 year	One of the two highest short-term	None	None
З Bankers acceptances	None	One of the two highest short-term	Issued by a depository institution	None
З Commercial paper	270 days	Highest short-term	None	None
З Non-callable Term Federal funds and Eurodollar time deposits	100 days	Highest short-term	None	20%
З Master notes	270 days	Highest short-term	None	20%
З Repurchase agreements collateralized by eligible investments or marketable securities rated in the highest credit rating category by an NRSRO	100 days	NA	None	None
(5) Mortgage Securities
З Issued or guaranteed by the United States	None	NA	None	None
З Fannie Mae or Freddie Mac mortgage securities	None	NA	None	50%
З Non-Agency securities that comply 15 U.S.C. 77d(5) or 15 U.S.C. 78c(a)(41)	None	Highest	None	15%
З Commercial mortgage-backed securities	None	Highest	З Security must be backed by a minimum of 100 loans. З Loans from a single mortgagor cannot exceed 5% of the pool З Pool must be geographically diversified pursuant to the board's policy.	15%
(6) Asset-Backed Securities secured by: З Credit card receivables З Automobile loans З Home equity loans З Wholesale automobile dealer loans З Student loans З Equipment loans З Manufactured housing loans	None	Highest	5-year WAL for fixed rate or floating rate ABS at their contractual interest rate caps 7-year WAL for floating rate ABS that remain below their contractual interest rate cap	20%
(7) Corporate Debt Securities	5 years	One of the two highest	Cannot be convertible to equity securities	20%
(8) Diversified Investment Funds Shares of an investment company registered under section 8 of the Investment Company Act of 1940	NA	NA	The portfolio of the investment company must consist solely of eligible investments authorized by ЇЇ 615.5140 and 615.5174. The investment company’s risk and return objectives and use of derivatives must be consistent with FCA guidance and your investment policies.	None, if your shares in each investment company comprise 10% or less of your portfolio. Otherwise counts toward limit for each type of investment.

(b) Rating of foreign countries. Whenever the obligor or issuer of an eligible investment is located outside the United States, the host country must maintain the highest sovereign rating for political and economic stability by an NRSRO.
(c) Marketable securities. All eligible investments, except money market instruments, must be marketable. An eligible investment is marketable if you can sell it quickly at a price that closely reflects its fair value in an active and universally recognized secondary market.
(d) Obligor limits.
(1) You may not invest more than 20 percent of your total capital in eligible investments issued by any single institution, issuer, or obligor. This obligor limit does not apply to obligations, including mortgage securities, that are issued or guaranteed as to interest and principal by the United States, its agencies, instrumentalities, or corporations.
(2) Obligor limits for your holdings in an investment company. You must count securities that you hold through an investment company towards the obligor limit of this section unless the investment company's holdings of the security of any one issuer do not exceed five (5) percent of the investment company’s total portfolio.
(e) Other investments approved by the FCA. You may purchase and hold other investments that we approve. Your request for our approval must explain the risk characteristics of the investment and your purpose and objectives for making the investment.

[64 FR 28896, May 28, 1999, as amended at 77 FR 66372, Nov. 5, 2012]

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