Md. Code Regs. 25.03.04.04

Current through Register Vol. 51, No. 12, June 14, 2024

Section 25.03.04.04 - [Effective until 10/22/2024] Diversification

A. Subject to the requirements in §B of this regulation, public money may be invested in the securities authorized by State Finance and Procurement Article, § 6-222(b), Annotated Code of Maryland.

B. A financial officer may invest public money in a given type of security not more than the following percentage of the overall investment portfolio over which the financial officer manages:

(1) For an obligation for which the United States has pledged its faith and credit for the payment of the principal and interest, 100 percent;

(2) For an obligation that a federal agency or a federal instrumentality has issued in accordance with an act of Congress, 100 percent with no more than 33 percent dedicated to a single issuer;

(3) For an obligation issued and unconditionally guaranteed by a supranational issuer denominated in United States dollars and eligible to be sold in the United States, 40 percent;

(4) For a repurchase agreement collateralized in an amount not less than 102 percent of the principal amount by an obligation of the United States, its agencies, or instrumentalities, provided the collateral is held by a custodian other than the seller designated by the buyer, 75 percent with no more than 30 percent of the total amount held by one counterparty;

(5) For bankers' acceptances guaranteed by a financial institution with a short-term debt rating in the highest letter and numerical rating by at least one nationally recognized statistical rating organization as designated by either the United States Securities and Exchange Commission or the State Treasurer, 20 percent;

(6) For securities permitted by State Finance and Procurement Article, § 6-222(b)(vi), Annotated Code of Maryland, 25 percent;

(7) For commercial paper that has received the highest letter and numerical rating by at least two nationally recognized statistical rating organizations as designated by the United States Securities and Exchange Commission, 35 percent with no more than 10 percent from a single issuer;

(8) For money market mutual funds meeting the requirements of State Finance and Procurement Article, § 6-222(b)(viii), Annotated Code of Maryland, 50 percent; and

(9) For any investment portfolio created under the Maryland Local Government Investment Pool, 100 percent, subject to the limit of the General Fund allocation.

Md. Code Regs. 25.03.04.04

Regulation .04 adopted effective 51:11 Md. R. 577, effective 4/25/2024, exp. 10/22/2024 (Emergency).