2009-07-13 Regular Meeting and Workshop Meeting of La Porte City Counci

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E. Commercial Paper 1. Commercial paper is an authorized investment under this subchapter if the commercial paper; a) has a stated maturity of 270 days or fewer from the date of its issuance; and b) is rated not less than A-1 or P-1 or an equivalent rating by at least; c) two nationally recognized credit rating agencies; or d) one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state. F. Mutual Funds 1. A no-load money market mutual fund is an authorized investment under this subchapter if the mutual fund: a) is registered with and regulated by the Securities and Exchange Commission; b) provides the investing entity with a prospectus and other information required by the Securities and Exchange Act of 1934 (15 U.S.C. Section 80a-1 et seq.); c) has a dollar -weighted average stated maturity of 90 days or fewer; and d) includes in its investment objectives the maintenance of a stable net asset value of $1 for each share. 2. In addition to a no-load money market mutual fund permitted as an authorized investment in Subsection (a), a no-load mutual fund is an authorized investment under this Section if the mutual fund: a) is registered with the Securities and Exchange Commission; b) has an average weighted maturity of less than two years; c) is invested exclusively in obligations approved by this subchapter; d) is continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or it equivalent; and e) conforms to the requirements set forth in Sections 2256.016 (b) and (c) relating to the eligibility of investment pools to receive and invest funds of investing entities. 3. An entity is not authorized by this section to: a) invest in the aggregate more than 15 percent of its monthly average fund balance, excluding bond proceeds and reserves in other funds held for debt service, in mutual funds described in Subsection (b);