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Delaware General AssemblyDelaware RegulationsMonthly Register of RegulationsDecember 2014

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The Cash Management Policy Board (the "Board") published Proposed Regulations on Objectives and Guidelines for the Investment of State of Delaware Funds in the October 1, 2014 edition of the Delaware Register of Regulations. Publication in the Delaware Register of Regulations also signified the start of a 30-day public comment period that began on the same date and ended on October 30, 2014.
3. Pursuant to 29 Del.C. §2716, the Board has statutory authority to promulgate regulations governing the investment of certain funds belonging to, or in the custody of, the State.
NOW THEREFORE, it is ordered that the proposed regulations, as set forth in the attached copy, are adopted and shall be final effective ten (10) days from the date this Order is published in the Delaware Register of Regulations.
IT IS SO ORDERED the 15th day of November, 2014.
Approved this 15th day of November, 2014.
1.1 The Cash Management Policy Board (hereinafter the "Board") was created by 63 Del. Laws Ch. 142, to establish policies (a) for the investment of all money belonging to the State or on deposit from its political subdivisions, except money deposited in any State Pension Fund or the State Deferred Compensation Program, and (b) to determine the terms, conditions, and other matters relating to those investments including the designation of permissible investments. (29 Del.C. §2716(a)).
1.2.2.1 Endowment Accounts: Endowment accounts consist of funds set-aside for specified purposes.
As mandated by 29 Del.C. §2716, the State's funds shall be invested pursuant to the prudent person standard under the guidelines set forth below. The Board will review regularly its investment policies and strategies in light of the State's experience as well as economic and financial conditions. Any modifications to these guidelines shall be promptly communicated in writing to the investment managers acting pursuant thereto. The Board will consider special exceptions to these guidelines on a case-by-case basis. To the extent certain funds are subject to additional restrictions, the most limiting of the guidelines will apply to those funds.
[4.2.5 Endowment Accounts
4.2.[65] Authority Operating, Bond and Debt Service Reserve Fund Accounts
4.2.[65].1 Investment Objectives: State Authorities maintain various operating, bond and debt reserve funds, the investment of which is governed by statutes, bond trust agreements or Federal guidelines. The investment objectives of the operating, bond and debt service reserve funds include maximizing yield and maintaining the safety of principal. (Current tax law requires that aggregate earnings in excess of the bond yield on bond and debt service reserve funds, however, must be rebated to the Federal government).
4.2.[65].2 Maturity Restrictions: The maximum maturity for any investment at the time of purchase shall be ten years, except when prudent to match a specific investment instrument with a known specific future liability, in which case the maturity limitation shall match the maturity of the corresponding liability.
6.10 Mortgage-Backed Securities. The Cash Reserve (Intermediate) Account[, Endowment Account,] and Liquidity Account may invest in AAA-rated Government National Mortgage Association (GNMA), Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Association (FHLMC) mortgage-backed securities in the form of pass-throughs. The average life of these securities in the Liquidity Account is not to exceed two years.
Last Updated: December 31 1969 19:00:00.
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