Section 0780-01-54-.13 - INVESTMENTS(1) Each pool shall maintain an amount equal to at least eighty-five percent (85%) of its net assets in the following: (a) Cash and cash equivalents;(b) A certificate of deposit issued by a bank or other financial institution whose deposits qualify for Federal Deposit Insurance Corporation protection, provided, that if the Commissioner determines that the amount of the certificate of deposit purchased by an insurer in any one bank is not a sound investment, the Commissioner may require the insurer to liquidate that portion found to be an unsound investment;(c) A share of savings account of a savings and loan or building and loan association, to the extent that an account is insured by the Federal Deposit Insurance Corporation; or(d) A rated credit instrument that is issued, assumed, guaranteed, or insured by the United States or Canada or by a government-sponsored enterprise of the United States or Canada if the instrument is assumed, guaranteed, or insured by the United States or Canada or is otherwise backed or supported by the full faith and credit of the United States or Canada.(2) Notwithstanding any other provision in this Chapter, funds not needed for current obligations may be invested by the board of trustees in "Tennessee securities" as defined in T.C.A. § 56- 4-210(b).(3) Investment in real estate by a pool may only be undertaken with the prior approval of the Commissioner.(4) Each pool shall maintain its investments and deposits pursuant to Chapter 0780-1-46.Tenn. Comp. R. & Regs. 0780-01-54-.13
Original rule filed April 8, 1986; effective May 8, 1986. Repeal and new rule filed August 31, 2005; effective November 14, 2005.Authority: T.C.A. §§ 50-6-405(c) and (h) and 56-4-210.