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Utah Administrative Code (Current through November 1, 2019) |
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R628. Money, Management Council |
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R628-17. Limitations on Commercial Paper and Corporate Notes |
| R628-17-1. Authority |
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Latest version.
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This rule is issued pursuant to Section 51-7-18(2)(b). |
| R628-17-2. Scope |
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This rule establishes limits on the dollar amount of public funds that a public treasurer may invest in commercial paper or corporate obligations of a single issuer. |
| R628-17-3. Purpose |
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The purpose of this rule is to provide guidelines for treasurers when investing public funds in commercial paper or corporate obligations. The guidelines established by this rule are designed to be flexible enough to allow public treasurers to receive competitive market rates on funds placed in these types of investment instruments while maintaining sufficient protection from loss. |
| R628-17-4. Definitions |
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For the purpose of this rule: Commercial paper means: an unsecured promissory note that matures on a specific date, and is issued by industrial, utility, and finance companies. The commercial paper must meet the criteria for investment as described in Section 51-7-11(3). Corporate obligation means: A secured or unsecured note with original term to maturity ranging from nine months to thirty years that is issued by an industrial, utility or finance company. The corporate obligation must meet the criteria for investment as described in Section 51-7-11(3). |
| R628-17-5. General Rule |
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Latest version.
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The maximum amount of any public treasurer's portfolio which can be invested in a single issuer of commercial paper and corporate obligations shall be as follows: 1. Portfolios of $10,000,000 or less may not invest more than 10% of the total portfolio with a single issuer. 2. Portfolios greater than $10,000,000 but less than $20,000,000 may not invest more than $1,000,000 in a single issuer. 3. Portfolios of $20,000,000 or more may not invest more than 5% of the total portfolio with a single issuer. The amount or percentages used in determining the amount of commercial paper and or corporate obligations a treasurer may purchase, shall be determined by the book value of the portfolio at the time of purchase. |