Sec. 37.23.030. Collateralization.

280 words·~1 min read·/ak/title-37/chapter-23/37-23-030

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Investment in certificates of deposit under AS 37.23.020

(6)and the entire amount of principal and interest payable upon maturity of the certificates must be collateralized by a combination of securities that are marked to market at least monthly and have maturity dates that do not exceed five years. Only the following securities may serve as collateral:

(1)obligations of the United States with a maturity date of five years or less after the date of the pool's investment transaction, and with a market value of at least 102 percent;

(2)securities in United States agencies or instrumentalities that are actively traded, other than mortgage pass-through securities, with a maturity date of

(A)one year or less after the date of the pool's investment transaction, and with a market value of at least 103 percent;

(B)more than one year and less than five years after the date of the pool's investment transaction, and with a market value of at least 107 percent;

(3)mortgage pass-through securities issued by the Government National Mortgage Association with a market value of at least 120 percent;

(4)obligations of the state or its political subdivisions secured by the full faith, credit, and taxing power of the state or its political subdivisions, rated A or higher by at least one of the nationally recognized rating services, with a maturity date of

(A)one year or less after the date of the pool's investment transaction, and with a market value of at least 102 percent;

(B)more than one and less than five years after the date of the pool's investment transaction, and with a market value of at least 107 percent.