AUTHORIZED INSTRUMENTS Clause Samples

AUTHORIZED INSTRUMENTS. Consistent with the investment criteria contained in the Participation Agreement, the Board and the Investment Advisor are authorized to invest investment property in only the following: (a) US Treasury Bonds, Bills, Notes, and Treasury Strips, (b) Obligations of an agency or instrumentality of the United States. (c) Commercial paper rated at the time of purchase within the highest two classifications established by not less than two standard rating services (i.e., as of September 18, 2009, A- 1+ and A-1 by S&P Global Ratings Service, P-1 by ▇▇▇▇▇’▇ Investors Service, or F1+ and F1 by Fitch, Inc.) and that matures not more than 270 days after the date of purchase. (d) Bankers’ acceptances issued by FDIC member United States banks. F-2 (e) Repurchase agreements consisting of instruments listed in a subdivision (a or b) Repurchase agreements shall be 102% collateralized with Public Securities Association (PSA) Master Repurchase agreement on file and or tri-party custody agreement on file. (f) Certificates of deposit of a financial institution eligible under law to be a depository of Participant public agencies of government so long as such articles of deposit are secured 102% at the value of each by eligible collateral listed on Schedule I for any amount of principal and accrued interest not insured by an agency of the United States. (g) In addition to the investments authorized in subsection (f), certificates of deposit issued in accordance with all of the following conditions: a. The funds are initially invested through a financial institution that is not ineligible to be a depository of surplus funds belonging to the state of Michigan under section 6 of 1855 PA 105, MCL 21.146. b. The financial institution arranges for the investment of the funds in certificates of deposit in 1 or more insured depository institutions, as defined in 12 USC 1813, or 1 or more insured credit unions, as defined in 12 USC 1752, for the account of Michigan CLASS EDGE. c. The full amount of the principal and any accrued interest of each certificate of deposit is insured by an agency of the United States. d. The financial institution acts as custodian for Michigan CLASS EDGE with respect to each certificate of deposit. e. At the same time that the funds of Michigan CLASS EDGE are deposited and the certificate or certificates of deposit are issued, the financial institution receives an amount of deposits from customers of other insured depository institutions or insured credit uni...