(a) You may hold only the types, quantities, and qualities of non-program investments listed in the following Non-Program Investment Eligibility Criteria Table. These investments must be denominated in United States dollars.
Non-Program Investment Eligibility Criteria Table----------------------------------------------------------------------------------------------------------------
Maximum percentage
Final maturity NRSRO issue or of total non-
Asset class limit issuer credit Other requirements program investment
(1) Obligations of the United None.............. NA................ None.............. None.
States.
Treasuries
Other obligations
(except mortgage securities)
fully insured or guaranteed by
the United States Government or
a Government agency.(2) Obligations of Government- None.............. NA................ None.............. None.
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 None.............. None.
highest.
Revenue bonds.......... 5 years for fixed Highest........... None.............. 15%.
rate bonds and 10
years for index/
floating rate
bonds.(4) International and None.............. None.............. The United States None.
Multilateral Development Bank must be a voting
Obligations. shareholder.(5) 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.
Prime 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.
collateralized by eligible
investments or marketable
securities rated in the highest
credit rating category by an
NRSRO.(6) Mortgage Securities:
Issued or guaranteed by None.............. NA................ .................. None.
the United States or a
Government agency.
Government-sponsored None.............. One of the two .................. 50%.
agency mortgage securities. highest.
Non-Government agency None.............. Highest........... .................. 15% combined.
or Government-sponsored agency
securities that comply with 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..(7) Asset-Backed Securities None.............. Highest........... Maximum of 5-year 25% combined.
secured by: WAL for fixed
Credit card receivables rate or floating
Automobile loans....... rate ABS at their
Home equity loans...... contractual
Wholesale automobile interest rate
dealer loans. caps.
Student loans..........
Equipment loans........
Manufactured housing
loans.(8) Corporate Debt Securities... 5 years........... One of the highest Cannot be 25%.
two for convertible to
maturities equity securities.
greater than 3
years, and one of
the highest three
for maturities of
three years or
less.(9) 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 less than 10% of
investments your portfolio.
authorized by Otherwise counts
this section. toward limit for
The investment each type of
company's risk investment.
and return
objectives and
use of
derivatives must
be consistent
with FCA guidance
and your
investment
policies..----------------------------------------------------------------------------------------------------------------Note: You must also comply with requirements of paragraphs (b), (c), and (d) of this section, and Sec. 651.40
when applicable. ``NA'' means not applicable.
(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 investments. All eligible investments, except money market instruments, must be readily marketable. An eligible investment is marketable if you can sell it promptly at a price that closely reflects its fair value in an active and universally recognized secondary market. You must evaluate and document the size and liquidity of the secondary market for the investment at time of purchase.
(d) Obligor limits. (1) You may not invest more than 25 percent of your regulatory capital in eligible investments issued by any single entity, issuer, or obligor. This obligor limit does not apply to Government-sponsored agencies or Government agencies. You may not invest more than 100 percent of your regulatory capital in any one Government-sponsored agency. There are no obligor limits for Government agencies.
(1) You may not invest more than 25 percent of your regulatory capital in eligible investments issued by any single entity, issuer, or obligor. This obligor limit does not apply to Government-sponsored agencies or Government agencies. You may not invest more than 100 percent of your regulatory capital in any one Government-sponsored agency. There are no obligor limits for Government agencies.
(2) Obligor limits for your holdings in an investment company. You must count securities that you hold through an investment company toward the obligor limits of this section unless the investment company's holdings of the security of any one issuer do not exceed 5 percent of the investment company's total portfolio.
(e) Preferred stock and other investments approved by the FCA. (1) You may purchase non-program investments in preferred stock issued by other Farm Credit System institutions only with our written prior approval. You may also purchase non-program investments other than those listed in the Non-Program Investment Eligibility Criteria Table at paragraph (a) of this section only with our written prior approval.
(1) You may purchase non-program investments in preferred stock issued by other Farm Credit System institutions only with our written prior approval. You may also purchase non-program investments other than those listed in the Non-Program Investment Eligibility Criteria Table at paragraph (a) of this section only with our written prior approval.
(2) Your request for our approval must explain the risk characteristics of the investment and your purpose and objectives for making the investment.