(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]