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TREASURER=S INVESTMENT POOLS
There are three types of pools which boroughs and townships may participate in:
INVEST I consists of:
1) United States Treasury Bills;
2) Short-term obligations of the United States government, and its agencies and
instrumentalities;
3) Repurchase agreements with banks and non-banks using only United States government,
agency and instrumentality obligations as collateral; and
4) Certificates of deposit in banking institutions insured by the FDIC or bank insurance fund.
To the extent that a certificate of deposit is not fully insured by one of those sources, it must be
collateralized by the institution as provided by law. Certificates of Deposit may be purchased from
both (i) Pennsylvania-based or non-Pennsylvania-based commercial banks, up to a level equal to
20% of an institution's capital and surplus or net worth and (ii) savings banks or savings and loans up
to a level equal to 20% of an institution's assets minus liabilities.
INVEST II consists of:
1) United States Treasury Bills;
2) Shorterm obligations of the United States government, and its agencies and instrumentalities;
3) Repurchase agreements with banks and non-banks using only United States government,
agency and instrumentality obligations as collateral; and
4) Certificates of deposit in banking institutions insured by the FDIC or bank insurance fund.
To the extent that a certificate of deposit is not fully insured by one of those sources, it must be
collateralized by the institution as provided by law. Certificates of Deposit may be purchased from
both (i) Pennsylvania-based or non-Pennsylvania-based commercial banks, up to a level equal to
20% of an institution's capital and surplus or net worth and (ii) savings banks or savings and loans up
to a level equal to 20% of an institution's assets minus liabilities; and
5) Commercial Paper, which consists of unsecured promissory notes issued by any U.S.
industrial, common carrier or public utility and finance company. This category also includes prime
Commercial Paper. In order to be purchased, all Commercial Paper must meet the statutory criteria
established by law. Furthermore, all Commercial Paper must bear the credit rating listed on page 8
of this investment brochure.
INVEST Ill (for bond proceeds only) consists of:
1) Those obligations permitted by the terms of bond or trust indentures of local governments
where arbitrage requirements apply. Members of this pool may customize their investment plan with
the Treasury Department.
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