Investment Types and Credit Guidelines:   Consistent with the Act, the following investments will be permitted by this policy and are those defined by state law. If additional types of securities are approved for investment by public funds by state statute, they will not be eligible for investment by the District until this Policy has been amended and the amended version adopted by the Board. Typical types of securities include:

1. U.S. Treasury and other government obligations that carry the full faith and credit guarantee of the United States for the payment of principal and interest.
2. Federal Agency or U.S. government sponsored enterprises (GSE) obligations, participations or other instruments
3. Bankers’ acceptances;
4. Federally insured time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:
5. The amount per institution is limited to the maximum covered under federal insurance;
6. Time deposits (Non-negotiable certificates of deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with state law
7. Negotiable certificates of deposit (NCDs)
8. Fully collateralized repurchase agreements and reverse repurchase agreements with qualified depositories
9. Commercial paper that is classified as “first tier” by two nationally recognized statistical rating organizations, one of which must be Moody’s Investor Service or Standard and Poor’s, which has a remaining term to maturity of:
   1. 270 days or less for paper issued under 15 U.S.C. Sec 77c(a)(3); or
   2. 365 days or less for paper issued under 15 U.S.C. Sec 77d(2);
10. Fixed rate corporate obligations that:
    1. are rated “A” or higher or the equivalent of “A” or higher, by two nationally recognized statistical rating organizations one of which must be Moody’s Investors Service, or Standard and Poor’s;
    2. are senior unsecured obligations of the issuer;
    3. are publicly traded; and
    4. have a remaining term to final maturity of 15 months or less or is subject to a hard put at par value or better, within 365 days;
11. Variable rate securities that:
    1. are rated “A” or higher or the equivalent of “A” or higher by two nationally recognized statistical rating organizations, one of which must be Moody’s Investors Service or Standard and Poor’s;
    2. are senior unsecured obligations of the issuer;
    3. are publicly traded
    4. are repriced at least semiannually; and
    5. have a remaining term to final maturity not to exceed three years; or are subject to a hard put at par value or better, within 365 days;
12. Utah Public Treasurer Investment Fund (PTIF)

IMPORTANT NOTE: If the credit rating of a security is subsequently downgraded below the minimum rating level for a new investment of that security, the investment officers shall evaluate the downgrade on a case-by-case basis in order to determine if the security should be held or sold. The investment officers will apply the general objectives of safety, liquidity, yield and legality to make the decision.