Texas Register, Volume 44, Number 51, Pages 7779-8116, December 20, 2019 Page: 7,798
7779-8116 p. ; 28 cm.View a full description of this periodical.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
(-b-) must be rated "Tier 1" as defined in
clause (ii)(IV) of this subparagraph; and
(-c-) maximum 397-day maturity.following criteria:
(IV) Asset backed commercial paper, under the
(-a-) dollar limit maximum per issuer of 5.0%of investment portfolio;
(-b-) must be rated "Tier 1" as defined in
clause (ii)(IV) of this subparagraph; and
(-c-) maximum 397-day maturity.criteria:
life on fixed rate;(V) Asset backed securities, under the following
(-a-) maximum 397-day weighted average(-b-) maximum three-year weighted average
life on floating rate, with maximum reset period of 94 days and use
a standard repricing index such as LIBOR, Federal Funds, Treasury
Bills, or commercial paper; and
(-c-) rated Aaa and AAA by Moody's In-
vestor Service and Standard & Poor's Corporation at time of purchase.
One AAA rating may suffice if only rated by one Nationally Recog-
nized Securities Rating Organization (NRSRO).
(VI) Corporate debt (other than commercial pa-
per), under the following criteria:
(-a-) must be senior debt;
(-b-) maximum 397-day maturity on fixed
rate;
(-c-) maximum three-year maturity on float-
ing rate, with maximum reset period of 94 days and use a standard
repricing index such as LIBOR, Federal Funds, Treasury Bills, or com-
mercial paper;
(-d-) for floating rate corporate obligations
with a maturity greater than 397 days, a long-term rating of AA2 and
AA by Moody's Investor Service and Standard & Poor's Corporation
at time of purchase; and, for fixed rate or floating rate corporate
obligations with a remaining maturity of 397 days or less, a short-term
rating of "Tier 1" as defined in clause (ii)(IV) of this subparagraph or,
for such corporate obligations without a short-term rating, an issuer
rating of Tier 1; and
(-e-) dollar limit maximum per issuer of 5.0%
of investment portfolio at time of purchase, including any other obli-
gations of that issuer.
(VII) Reverse repurchase agreements, under the
following criteria:
(-a-) counterparty must be "Tier 1" rated as
defined in clause (ii)(IV) of this subparagraph for fixed rate and AA2
and AA by Moody's Investor Service and Standard & Poor's Corpora-
tion for floating rate or be a "Primary Dealer" in Government Securities
as per the New York Federal Reserve Bank;
(-b-) underlying collateral may be any secu-
rity permitted for direct investment;
(-c-) lending agent or a third party custodian
must hold collateral under tri-party agreement;
(-d-) collateral must be marked to market
daily and maintained at the following margin levels:[;]
(-1-) U.S. Government, U.S. Gov-
ernment Agency, sponsored Agency, International Organization at
100%;
(-2-) Certificate of Deposits,
Bankers Acceptance, bank notes, commercial paper at 102% underone year to maturity and rated at least "Tier 1" as defined in clause
(ii)(IV) of this subparagraph; and
(-3-) corporate debt (other than
commercial paper) at 105% rated at least AA2/AA or better by
Moody's Investor Service and Standard & Poor's Corporation at time
of purchase;
(-e-) due to daily margin maintenance, dollar
limits and maturity limits of underlying collateral are waived, except
with respect to the maturity limit in subclause (II)(-d-) of this clause;
(-f-) maximum 180-day maturity; and
(-g-) dollar limit for total reverse repurchase
agreements is the greater of $300 million or 15% of value of cash col-
lateral portfolio with one counterparty at time of purchase.
(VIII) Foreign sovereign debt, under the follow-
ing criteria:
(-a-) any security issued by or fully guaran-
teed as to payment of principal and interest by a foreign government
whose sovereign debt is rated AA2/AA or better by Moody's Investor
Service and Standard & Poor's Corporation at time of purchase. Se-
curities must be delivered to Lending Agent or a third party under a
Tri-Party agreement;
(-b-) dollar limit maximum per issuer or guar-
antor of 2.5% of investment portfolio; and
(-c-) maximum maturity of 397 days.
(IX) Short Term Investment Fund (STIF) and/or
Registered Mutual Funds, under the following criteria:
(-a-) funds must comprise investments simi-
lar to those that would otherwise be approved for securities lending
investment under the provisions of this subparagraph, not invest in
derivatives, and not re-hypothecate assets;
(-b-) lender must approve each fund in writ-
ing and only upon receipt of offering documents and qualified letter;
and
(-c-) fund must have an objective of a con-
stant share price of one dollar.
(ii) Investment parameters.
(I) Maximum weighted average maturity of in-
vestment portfolio must be 180 days.
(II) Maximum weighted average interest rate ex-
posure of investment portfolio must be 60 days.
(III) All investments must be U.S. dollar-denom-
inated.
(IV) "Tier 1" credit quality is defined as the high-
est short-term rating category by the following NRSROs:
(-a-) Standard & Poor's;
(-b-) Moody's Investors Service; and
(-c-) Fitch Investors Service. [- and]
{(-d-) Duff& Phelps, -C-
(V) At time of purchase all investments must
be rated in the highest short-term numerical category by at least two
NRSROs, one of which must be either Standard & Poor's or Moody's
Investors Service.
(VI) Issuer's ratings cannot be on negative credit
watch at the time of purchase.
(VII) Interest and principal only (10, PO)
stripped mortgages are not permitted.
(VIII) Mortgage backed securities are not per-
mitted.44 TexReg 7798 December 20, 2019 Texas Register
Upcoming Pages
Here’s what’s next.
Search Inside
This issue can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Periodical.
Texas. Secretary of State. Texas Register, Volume 44, Number 51, Pages 7779-8116, December 20, 2019, periodical, December 20, 2019; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth1221934/m1/20/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.