10 Pa. Code § 15.10 - General investment procedures

Funds operating under section 404(b)(iii) of the Banking Code (7 P. S. § 404(b)(iii)) shall be subject to the following additional restrictions:

(1) No funds or other property shall be invested in a participation in a fund if, as result of such an investment, the participant would have an interest aggregating in excess of 10% of the then market value of the fund.

(2) If two or more accounts are created by the same person or persons, and as much as 50% of the income or principal of each account is payable or applicable to the use of the same person or persons, such accounts shall be considered as one, and controlled by the limitation of subsection (a).

(3) No investment for a collective investment fund shall be made in stocks, bonds or other obligations of any one person, firm or corporation if as a result of such investment, the total amount invested in stocks, bonds or other obligations issued or guaranteed by such person, firm or corporation would aggregate in excess of 10% of the then market value of the fund. The limitation of 10% shall not apply to investments in direct obligations of the United States or other obligations fully guaranteed by the United States as to principal and interest.

(4) Any institution administering a fund shall have the responsibility of maintaining in cash and readily marketable investments such part of the assets of the fund as shall be deemed to be necessary to provide adequately for the needs of participants and to prevent inequities between such participants.

(5) If, prior to any admissions to or withdrawals from a fund, the institution shall determine that, after effecting the admissions and withdrawals which are to be made, less than 40% of the value of the remaining assets of the collective investment fund would be composed of cash and readily marketable investments, no admissions to or withdrawals from the fund shall be permitted as of the valuation date upon which such determination is made provided that ratable distribution upon all participations shall not be so prohibited in any case.

Notes

10 Pa. Code § 15.10