Ga. Comp. R. & Regs. R. 80-3-2-.07 - Permissible Investments

(1) The following investments are permissible to satisfy the requirements of O.C.G.A. § 7-1-683.2(c):

(a) Cash, including demand deposits, savings deposits, and funds in such accounts held for the benefit of the licensee's customers in a federally insured depository financial institution, and the following cash equivalents: Automated Clearing House ("ACH") items in transit to the licensee and ACH items or international wires in transit to a payee, cash in transit via armored car, cash in smart safes, cash in licensee-owned locations under appropriate controls, debit card or credit card-funded transmission receivables owed by any federally insured depository financial institution, or money market mutual funds rated "AAA" by S&P Global Ratings ("S&P"), or the equivalent from any eligible rating service.

(b) Certificates of deposit or senior debt obligations of a financial institution whose deposits are federally insured.

(c) An obligation of the United States or a commission, agency, or instrumentality thereof; an obligation that is guaranteed fully as to principal and interest by the United States; or an obligation of a state or a governmental subdivision, agency, or instrumentality;

(d) One hundred percent of the surety bond provided for in O.C.G.A. § 7-1-683.2(b) that exceeds the amount required by the Department.

(e) Receivables that are payable to a licensee from its authorized agents in the ordinary course of business that are less than seven days old, up to 50% of the aggregate value of the licensee's total permissible investments, with not more than 10% of the aggregate value of the licensee's total permissible investments consisting of receivables from a single authorized agent; and,

(f) The following investments are permissible up to 20% per category and combined up to 50% of the aggregate value of the licensee's total permissible investments:

(i) A short-term investment of up to six months bearing an eligible rating;

(ii) Commercial paper bearing an eligible rating;

(iii) A bill, note, bond, or debenture bearing an eligible rating;

(iv) United States tri-party repurchase agreements collateralized at 100% or more with U.S. government or agency securities, municipal bonds, or other securities bearing an eligible rating;

(v) Money market mutual funds rated less than "AAA" and equal to or higher than "A-" by S&P, or the equivalent from any other eligible rating service; and,

(vi) A mutual fund or other investment fund composed solely and exclusively of one or more permissible investments listed in subsections (a), (b), and (c) above.

(2) For purposes of this rule, these terms shall mean the following:

(a) "Eligible rating service" means any Nationally Recognized Statistical Rating Organization (NRSRO) as defined by the U.S. Securities and Exchange Commission.

(b) "Eligible rating" means a credit rating of any of the three highest rating categories provided by an eligible rating service, whereby each category may include rating category modifiers such as "plus" or "minus" for S&P or the equivalent for any other eligible rating service. Long-term credit ratings are deemed eligible if the rating is equal to A- or higher by S&P, or the equivalent from any other eligible rating service. Short-term credit ratings are deemed eligible if the rating is equal to or higher than A-2 or SP-2 by S&P, or the equivalent from any other eligible rating service. In the event that ratings differ among eligible rating services, the highest rating shall apply when determining whether a security bears an eligible rating.

Notes

Ga. Comp. R. & Regs. R. 80-3-2-.07

O.C.G.A. §§ 7-1-61, 7-1-690.

Original Rule entitled "Permissible Investments" adopted. F. July 7, 2023; eff. July 27, 2023.