Effective Date: 08/07/2014
In considering the investment of University cash, protection of the principal amount must be the foremost consideration. It is therefore paramount that the purchase of speculative investments be prohibited. Optimum yield shall be our secondary objective.
Equities, fixed income securities and public and corporate bonds including but not limited to those permitted by Sections 18, 19 and 20 of Article IX of the Constitution of the State of Michigan.
Negotiable certificates of deposit, savings accounts, and other interest bearing accounts of (1) a bank which is a member of the Federal Deposit Insurance Corporation, (2) a savings and loan association which is a member of the Federal Savings and Loan Insurance Corporation, or (3) a credit union which is insured by the National Credit Union Administration, within the limitations imposed by Article IX, Section 20 of the Constitution of the State of Michigan.
Purchase of U.S. Treasury obligations, Federal agency securities, and money market certificates may be made in any amounts.
Deposits in cash management accounts may be made in any amount.
Commercial paper rated within the two highest classifications of prime as established by at least one of the standard rating services are authorized. The total investment in commercial paper of any one corporation shall be limited to an amount of $1,000,000 or 20% of the equity of the stockholders of the corporation, whichever is greater.
Bankers acceptances and irrevocable letters of credit drawn on a bank which is member of the Federal Deposit Insurance Corporation.
Eurodollar time deposits or certificates of deposit in Tier 1, 2, or 3 United States banks or their branches in Montreal, Toronto, Nassau, or London or Tier 1, 2, or 3 Canadian banks in Montreal or Toronto.
|01/28/80||Broadened authorized investments|
|09/24/93||Added exceptions for University Endowment Fund and Employee Retirement Health Care Plan|
|07/15/2010||Was previously Policy 13.1. Renumbered and added collateralized certificates of deposit as permitted investments.|
|08/07/2014||Revised to clarify language.|