Eligible Investments. Means the following categories of securities: (i) For all purposes: (A) Cash (insured at all times by the Federal Deposit Insurance Corporation); (B) Obligations of, or obligations guaranteed as to principal and interest by, the U.S. or any agency or instrumentality thereof, when such obligations are backed by the full faith and credit of the U.S. government including: o
... U.S. treasury obligations o All direct or fully guaranteed obligations o Farmers Home Administration o General Services Administration o Guaranteed Title XI financing o Government National Mortgage Association (GNMA) o State and Local Government Series (C) Obligations of government-sponsored agencies that are not backed by the full faith and credit of the U.S. government including: o Federal Home Loan Mortgage Corp. (FHLMC) Debt obligations o Farm Credit System (formerly: Federal Land Banks, Federal Intermediate Credit Banks, and Banks for Cooperatives) o Federal Home Loan Banks (FHL Banks) o Federal National Mortgage Association (FNMA) debt obligations o Financing Corp. (FICO) debt obligations o Resolution Funding Corp. (REFCORP) debt obligations o U.S. Agency for International Development (U.S. A.I.D) guaranteed notes U.S.A.I.D. securities must mature at least four business days before the appropriate payment date. (ii) Investments in refunding escrow accounts: 2 (A) Obligations of any of the following federal agencies which obligations represent the full faith and credit of the United States of America, including: o Export-Import Bank o Rural Economic Community Development Administration o U.S. Maritime Administration o Small Business Administration o U.S. Department of Housing & Urban Development (PHAs) o Federal Housing Administration o Federal Financing Bank (B) Direct obligations of any of the following federal agencies which obligations are not fully guaranteed by the full faith and credit of the U.S.: o Senior debt obligations issued by the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC) o Obligations of the Resolution Funding Corporation (REFCORP) o Senior debt obligations of the Federal Home Loan Bank System o Senior debt obligations of other government sponsored agencies (C) U.S. dollar denominated deposit accounts, federal funds and bankers' acceptances with domestic commercial banks which have a rating on their short term certificates of deposit on the date of purchase of: (1) "A-1+" by S&P and (2) either "P-1" by Moody's or "F1" by Fitch; and maturing not more than 360 calendar days after the date of purchase. (Ratings on holding companies are not considered as the rating of the bank); (D) Commercial paper that meets the ratings of the following listed rating agencies at the time of purchase: (1) "A-1+" by S&P and (2) either "P-1" by Moody's or "F1" by Fitch; which matures not more than 270 calendar days after the date of purchase; (E) Investments in a money market fund rated "AAAm" or "AAA-m" by S&P and "Aaa" by Moody's; (F) Pre-refunded "municipal obligations" which are defined as follows: any bonds or other obligations of any state of the U.S. or of any agency, instrumentality or local governmental unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice; and (1) Which are rated, based on an irrevocable escrow account or fund (the "escrow"), in the highest rating category of (a) S&P and (b) either Moody's or Fitch or any successors thereto; or 3 (2) (a) Which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or obligations described in paragraph (i)(B) above, which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (b) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this paragraph on the maturity date or dates specified in the irrevocable instructions referred to above, as appropriate; (G) Any other investment that is generally approved by Moody's, S&P and Fitch for the investment of funds held as collateral for securities rated in the highest investment rating category and that is not: (1) A financial asset that involves the Owner, the Administrator or the beneficial owners of the Owner in making decisions other than the decisions inherent in servicing the financial assets including without limitation any financial asset that includes an option to be exercised by the Owner, the Administrator or the beneficial owners of the Owner; or (2) A derivative financial instrument that involves the Owner, the Administrator or the beneficial owners of the Owner in making decisions including without limitation any derivative financial instrument that includes an option allowing the Owner, the Administrator or the beneficial owners of the Owner to choose to call or put other financial instruments; provided that a derivative financial instrument shall be an Eligible Investment only if it is acquired from proceeds of the issuance of Notes by the Owner at the time of such issuance. (iii) The value of the above investments shall be determined as follows: (A) For the purpose of determining the amount in any fund, all Investment Securities credited to such fund shall be valued at fair market value. The Trustee shall determine the fair market value based on accepted industry standards and from accepted industry providers. Accepted industry providers shall include but are not limited to pricing services provided by Financial Times Interactive Data Corporation, Merrill Lynch & Co., Citigroup Global Markets Inc., Bear Stearns & Co. Inc., Deutsche Bank AG, New York Branch, or Lehman Brothers; (B) As to certificates of deposit and bankers' acceptances: the face amount thereof, plus accrued interest thereon; and (C) As to any investment not specified above: the value thereof established by prior agreement between the Owner and the Trustee.
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