Ga. Comp. R. & Regs. R. 80-12-9-.03 - Investment of MALPB Funds

(1) Except as expressly authorized by this Rule or with the prior written approval of the Department an MALPB shall be precluded from making any investments. An MALPB may invest in the following investments:

(a) General obligations of the United States or of subsidiary corporations of the United States government fully guaranteed by such government, or to obligations issued and fully guaranteed by the Federal Land Bank, Federal Home Loan Bank, Federal Intermediate Credit Bank, Bank for Cooperatives, Federal Farm Credit Banks regulated by the Farm Credit Administration, Federal Home Loan Mortgage Corporation, or Federal National Mortgage Association;

(b) Tax exempt obligations issued by any state, county, municipal corporation, district, or political subdivision, or civil division or public instrumentality of any such government or unit of such government;

(c) Prime bankers' acceptances, or the units of any unit investment trusts the assets of which are exclusively invested in obligations of the type described in this rule provided that at the time of investment such obligations or the obligations held by any such unit investment trust are limited to obligations which are rated within one of the top two rating categories of any nationally recognized statistical rating organization;

(d) The shares of any mutual fund the investments of which are limited to securities of the type described in this Rule and distributions from which are treated for federal income tax purposes in the same manner as the interest on said obligations, provided that at the time of investment such obligations held or to be acquired by any such mutual fund are limited to obligations which are rated within one of the top two rating categories of any nationally recognized rating service;

(e) Securities lending transactions involving securities of the type described in this Rule; or

(f) Obligations of corporations organized under the laws of this state or any other state but only if the corporation has a market capitalization equivalent of $500 million and the obligation is rated in the highest ratings category by at least one nationally recognized statistical rating organization.

(2) The MALPB shall provide the Department with written notice within ten (10) days of each investment and, upon request by the Department, provide it with any supporting documentation related to the investment.

(3) Securities must be held in book entry form and maintained:

(a) In safekeeping at any: federally insured correspondent bank or trust company; Federal Home Loan Bank; or broker-dealer insured under the Securities Investor Protection Act provided the market value of such securities does not exceed $500,000; or

(b) As otherwise approved by the Department in writing.

Notes

Ga. Comp. R. & Regs. R. 80-12-9-.03

O.C.G.A. §§ 7-9-3, 7-9-13.

Original Rule entitled "Investment of MALPB Funds" adopted. F. Dec. 3, 2013; eff. Dec. 23, 2013.