Code of Federal Regulations (alpha)

CFR /  Title 12  /  Part 615  /  Sec. 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----------------------------------------------------------------------------------------------------------------

Final maturity NRSRO Credit Investment

(1) Obligations of the United None.............. NA................ None.............. None.

States.

Treasuries.

Agency securities

(except mortgage securities).

Other obligations fully

insured or guaranteed by the

United States, its agencies,

instrumentalities and

corporations.

(2) Municipal Securities:

General obligations.... 10 years.......... One of the highest None.............. None.

two.

Revenue bonds.......... 5 years........... Highest........... At the time of 15%.

purchase, you

must document

that the issue is

actively traded

in an established

secondary market.(3) International and None.............. None.............. The United States None.

Multilateral Development Bank must be a voting

Obligations. shareholder.(4) Money Market Instruments:

Federal funds.......... 1 day or One of the two None.............. None.

continuously highest short-

callable up to term.

100 days.

Negotiable certificates 1 year............ One of the two None.............. None.

of deposit. highest short-

term.

Bankers acceptances.... None.............. One of the two Issued by a None.

highest short- depository

term. institution.

Commercial paper....... 270 days.......... Highest short-term None.............. None.

Non-callable Term 100 days.......... Highest short-term None.............. 20%.

Federal funds and Eurodollar

time deposits.

Master notes........... 270 days.......... Highest short-term None.............. 20%.

Repurchase agreements 100 days.......... NA................ None.............. None.

collateralized by eligible

investments or marketable

securities rated in the highest

credit rating category by an

NRSRO.(5) Mortgage Securities:

Issued or guaranteed by None.............. NA................ None.............. None.

the United States.

Fannie Mae or Freddie None.............. NA................ None.............. 50%.

Mac mortgage securities.

Non-Agency securities None.............. Highest........... None.............. 15%.

that comply 15 U.S.C. 77d(5) or

15 U.S.C. 78c(a)(41).

Commercial mortgage- None.............. Highest........... Security

backed securities. 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.(6) Asset-Backed Securities None.............. Highest........... 5-year WAL for 20%.

secured by. fixed rate or

Credit card floating rate ABS

receivables.. at their

Automobile loans....... contractual

Home equity loans...... interest rate

Wholesale automobile caps.

dealer loans.. 7-year WAL for

Student loans.......... floating rate ABS

Equipment loans........ that remain below

Manufactured housing their contractual

loans.. interest rate

cap..(7) Corporate Debt Securities... 5 years........... One of the two Cannot be 20%.

highest. convertible to

equity securities.

(8) Diversified Investment Funds NA................ NA................ The portfolio of None, if yourShares of an investment company the investment shares in each

registered under section 8 of company must investment

the Investment Company Act of consist solely of company comprise

1940.. eligible 10% or less of

investments your portfolio.

authorized by Otherwise counts

Secs. 615.5140 toward limit for

and 615.5174. each type of

The investment investment.

company's risk

and return

objectives and

use of

derivatives must

be consistent

with FCA guidance

and your

investment

policies..----------------------------------------------------------------------------------------------------------------

(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.

(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]