Sec. 4-802. Investment Objectives for Short-Term Investment Pool Accounts.

The primary investment objective for the short-term investment pool accounts shall be to provide for the preservation of capital, with a secondary emphasis upon the maximization of investment income without undue exposure to risk. Funds needed for expenditures in less than one year shall be considered short-term. The average weighted maturity for each short-term investment manager shall be between one day and one year.

Types of investments that may be made include interest-bearing banking deposits such as certificates of deposits, public fund accounts, high yield savings accounts, short-term cash funds, money market funds that maintain net asset value, commercial paper, bankers acceptances, repurchase agreements, U.S. Government obligations, U.S. agency obligations and/or short term corporate bonds with maturities under one year.

University personnel will consider factors such as the overall level of deposits and investments maintained with primary banks and anticipated cash flow needs when placing investments. The use of additional banks for investment purposes will be considered in providing diversification. University personnel will review capital ratios of all banks utilized for investment purposes and select banks whose capital ratios reflect well capitalized ratios by FDIC. The use of bank products that provide additional protection such as collateral, or segregation of assets in trust departments may be used. The maximum amount of deposits and investments held with each primary bank will be $20 million. The maximum amount of investments held with any other one bank will be the lesser of 25% of the short term portfolio or .5% of the bank's total assets.