Title 200 | Chapter 014 | Regulation 091REG
PROPOSED
This document is not yet current.
PREVIOUS VERSION
The previous document that this document is based upon is available.
FINANCE AND ADMINISTRATION CABINET
State Investment Commission
(Amended at ARRS Committee)
200 KAR 14:091.Guidelines for money market instruments.
Section 1.
Definitions.(1)
"Bankers' acceptance" means a short-term negotiable discount note drawn on and accepted by a bank or trust company which is obligated to pay the face value amount at maturity.(2)
"Commercial paper" means an unsecured promissory obligation having a maturity of less than 270 days.(3)
"Commission" means the State Investment Commission.(4)
"NRSRO" means "Nationally Recognized Statistical Ratings Organization", which is a credit rating agency that is registered with the Securities and Exchange Commission, and which provides its opinion on the creditworthiness of an entity and the financial obligations issued by that entity.(5)
"Office" means the Office of Financial Management.Section 2.
Bankers' Acceptances.(1)
The office may purchase bankers' acceptances if rated in the highest short-term rating category by a commission approved(2)
The purchase of these instruments shall be:(a)
Made on a delivery versus payment basis; and(b)
Held in the Commonwealth's account in whatever depository shall be designated as eligible by the commission.(3)
(a)
Investment in bankers' acceptances shall be made for a period of no longer than 180 days per investment.(b)
Section 3.
Commercial Paper.(1)
The office may purchase commercial paper rated in the highest short-term rating category by a commission approved(2)
The purchase of these instruments shall be:(a)
Made on a delivery versus payment basis; and(b)
Held in the Commonwealth's account in whatever depository shall be designated as eligible by the commission.(3)
Section 4.
Negotiable Certificates of Deposit, Collateralized and Uncollateralized.(1)
The office may purchase collateralized certificates of deposit if issued by banks rated in one (1) of the three (3) highest categories by a commission approved(2)
The office may purchase uncollateralized negotiable certificates of deposit if issued by banks rated in one (1) of the two (2) highest categories by a commission approved(3)
The purchase of these instruments shall be:(a)
Made on a delivery versus payment basis; and(b)
Held in the Commonwealth's account in whatever depository shall be designated as eligible by the commission.(4)
(a)
Investment in negotiable certificates of deposits shall be made for a period of no longer than 270 days per investment(b)
Section 5.
Limits of Money Market Instruments Per Pool. The aggregate investment in bankers' acceptances, commercial paper, and negotiable certificates of deposit shall not exceed thirty-five (35) percent of pool assets or $25,000,000 per issuer.FILED WITH LRC: November 13, 2024
CONTACT PERSON: Laura Sharp, Administrative Specialist III, Office of General Counsel, 200 Mero Street, 5th Floor, Frankfort, Kentucky 40622; phone (502)564-6660, fax (502)564-9875, email laura.sharp@ky.gov.
FINANCE AND ADMINISTRATION CABINET
State Investment Commission
(Amended at ARRS Committee)
200 KAR 14:091.Guidelines for money market instruments.
Section 1.
Definitions.(1)
"Bankers' acceptance" means a short-term negotiable discount note drawn on and accepted by a bank or trust company which is obligated to pay the face value amount at maturity.(2)
"Commercial paper" means an unsecured promissory obligation having a maturity of less than 270 days.(3)
"Commission" means the State Investment Commission.(4)
"NRSRO" means "Nationally Recognized Statistical Ratings Organization", which is a credit rating agency that is registered with the Securities and Exchange Commission, and which provides its opinion on the creditworthiness of an entity and the financial obligations issued by that entity.(5)
"Office" means the Office of Financial Management.Section 2.
Bankers' Acceptances.(1)
The office may purchase bankers' acceptances if rated in the highest short-term rating category by a commission approved NRSRO.(2)
The purchase of these instruments shall be:(a)
Made on a delivery versus payment basis; and(b)
Held in the Commonwealth's account in whatever depository shall be designated as eligible by the commission.(3)
Investment in bankers' acceptances shall be made for a period of no longer than 180 days per investment.Section 3.
Commercial Paper.(1)
The office may purchase commercial paper rated in the highest short-term rating category by a commission approved NRSRO.(2)
The purchase of these instruments shall be:(a)
Made on a delivery versus payment basis; and(b)
Held in the Commonwealth's account in whatever depository shall be designated as eligible by the commission.(3)
Investments in commercial paper shall be made for a period of no longer than 270 days per investment.Section 4.
Negotiable Certificates of Deposit, Collateralized and Uncollateralized.(1)
The office may purchase collateralized certificates of deposit if issued by banks rated in one (1) of the three (3) highest categories by a commission approved NRSRO.(2)
The office may purchase uncollateralized negotiable certificates of deposit if issued by banks rated in one (1) of the two (2) highest categories by a commission approved NRSRO.(3)
The purchase of these instruments shall be:(a)
Made on a delivery versus payment basis; and(b)
Held in the Commonwealth's account in whatever depository shall be designated as eligible by the commission.(4)
Investment in negotiable certificates of deposits shall be made for a period of no longer than 270 days per investment.Section 5.
Limits of Money Market Instruments Per Pool. The aggregate investment in bankers' acceptances, commercial paper, and negotiable certificates of deposit shall not exceed thirty-five (35) percent of pool assets or $25,000,000 per issuer.FILED WITH LRC: November 13, 2024
CONTACT PERSON: Laura Sharp, Administrative Specialist III, Office of General Counsel, 200 Mero Street, 5th Floor, Frankfort, Kentucky 40622; phone (502)564-6660, fax (502)564-9875, email laura.sharp@ky.gov.