|§ 652.1 Purpose.||§ 652.1 Purpose.|
|§ 652.5 Definitions.||§ 652.5 Definitions.|
|§ 652.10 Investment management and requirements.||§ 652.10 Investment management.|
|§ 652.15 Interest rate risk management and requirements.||§ 652.15 Non-program investment purposes and limitation.|
|§ 652.20 Liquidity reserve management and requirements.||§ 652.20 Eligible non-program investments.|
|§ 652.25 Non-program investment purposes and limitation.||§ 652.25 Management of ineligible investments.|
|§ 652.30 Temporary regulatory waivers or modifications for extraordinary situations.||§ 652.30 Interest rate risk management.|
|§ 652.35 Eligible non-program investments.||§ 652.35 Liquidity reserve management and requirements.|
|§ 652.40 Stress tests for mortgage securities.||§ 652.40 [Reserved]|
|§ 652.45 Divestiture of ineligible non-program investments.||§ 652.45 Temporary regulatory waivers or modifications for extraordinary situations.|
FINAL MATURITY LIMIT
NRSRO ISSUE OR ISSUER CREDIT RATING REQUIREMENT
MAXIMUM PERCENTAGE OF TOTAL NON- PROGRAM INVESTMENT PORTFOLIO
|(1) Obligations of the United States
Other obligations (except mortgage securities) fully insured or guaranteed by the United States Government or a Government agency.
|(2) Obligations of Government-sponsored agencies
· Government-sponsored agency securities (except mortgage securities).
· Other obligations (except mortgage securities) fully insured or guaranteed by Government-sponsored agencies.
|(3) Municipal Securities|
|· General obligations||10 years||One of the two highest.||None||None|
|· Revenue bonds||5 years for fixed rate bonds and 10 years for index/ floating rate bonds||Highest||None||15%|
|(4) International and Multilateral Development Bank Obligations||None||None||The United States must be a voting shareholder.||None|
|(5) Money Market Instruments|
|· Federal funds||1 day or continuously callable up to 100 days||One of the two highest short-term.||None||None|
|· Negotiable certificates of deposit||1 year||One of the two highest short-term.||None||None|
|· Bankers acceptances||None||One of the two highest short-term.||Issued by a depository institution.||None|
|· Prime commercial paper||270 days||Highest short-term.||None||None|
|· Non-callable term Federal funds and Eurodollar time deposits.||100 days||Highest short-term.||None||20%|
|· Master notes||270 days||Highest short-term.||None||20%|
|· Repurchase agreements collateralized by eligible investments or marketable securities rated in the highest credit rating category by an NRSRO.||100 days||NA||None|
|ASSET CLASS||FINAL MATURITY LIMIT||NRSRO ISSUE OR ISSUER CREDIT RATING REQUIREMENT||OTHER REQUIREMENTS||MAXIMUM PERCENTAGE OF TOTAL NON- PROGRAM INVESTMENT PORTFOLIO|
|(6) Mortgage Securities|
|· Issued or guaranteed by the United States or a Government agency.||None||NA||None|
|· Government-sponsored agency mortgage securities.||None||One of the two highest.||50%|
|· Non-Government agency or Government-sponsored agency securities that comply with 15 U.S.C. 77d(5) or 15 U.S.C. 78c(a)(41).||None||Highest||15% combined|
|· Commercial mortgage-backed securities.||None||Highest|| Security must be backed by a minimum of 100 loans.|
· Loans from a single mortgagor cannot exceed 5% of the pool.
Pool must be geographically diversified pursuant to the board’s policy.
|(7) Asset-Backed Securities secured by:|
Credit card receivables
Home equity loans
Wholesale automobile dealer loans
Manufactured housing loans
|None||Highest||Maximum of 5-year WAL for fixed rate or floating rate ABS at their contractual interest rate caps.||25% combined|
|(8) Corporate Debt Securities||5 years||One of the highest two for maturities greater than 3 years, and one of the highest three for maturities of three years or less.||Cannot be convertible to equity securities.||25%|
|(9) Diversified Investment Funds
Shares of an investment company registered under section 8 of the Investment Company Act of 1940.
||The portfolio of the investment company must consist solely of eligible investments authorized by this section.
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 less than 10% of your portfolio. Otherwise counts toward limit for each type of investment.|