Section R20-5-724. Investment Activity of a Pool

A pool may invest surplus money not needed for immediate cash needs under the following conditions:

1.        Investments are limited to:

a.        United States Government bonds;

b.        United States Treasury notes;

c.        Municipal and corporate bonds described under sub- sections (A)(2), (3), and (4);

d.        Certificates of deposit;

e.        Savings accounts in banks located in Arizona that are federally insured; and

f.         Common or preferred stock.

2.        Corporate and municipal bonds are restricted to the top three major investment grades as determined by two financial rating services;

3.        Not more than 5% of a corporate municipal bond portfo- lio is invested in any one corporation or municipality;

4.        Not more than 30% of the market value of a portfolio is in corporate and municipal bonds;

5.        Not more than 20% of the market value of an investment portfolio is in common and preferred stocks; and

6.        Not more than 5% of a common and preferred stock port- folio is invested in any one corporation.

Historical Note

Adopted effective September 9, 1998 (Supp. 98-3).