Operating Policies and Procedures Manual

Effective Date: 07/01/96
Policy Number: 05-07
Section: Finance and Administration
Subject: Collateralization of Investments

POLICY

All investments made by the university must be fully collateralized with such collateral being evidenced by a bonded, third-party custody receipt provided to the university. Collateral may be of three types including:

  1. United States government securities,

  2. securities of agencies of the United States, or

  3. general obligation bonds of cities, counties, or school districts of the state of Arkansas.
If collaterality is by bonds of cities, counties or school districts, a collaterality rate of 120% (one hundred twenty percent) of par value is required.

(Adopted by the Arkansas State University Board of Trustees on December, 20, 1986.)

This page is maintained by Cassey Tune
Last updated on 01/31/2005