HomeMy WebLinkAbout960056.tiff RESOLUTION
RE: APPROVE DESIGNATION OF BANKS, SAVINGS BANKS AND PUBLIC ASSET POOLS
AS DEPOSITORIES FOR WELD COUNTY FUNDS
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, Section 30-10-708(1), C.R.S., as amended, states as follows:
"In all counties of this state, the county treasurer shall deposit all the funds and
moneys of whatever kind that come into his possession by virtue of his office, in his
name as such treasurer, in one or more state banks, national banks having their
principal offices in this state, or, in compliance with the provisions of Article 47 of
Ttitle 11, CRS, savings and loan associations having their principal offices in this
state which have theretofore been approved and designated by written resolution
duly adopted by a majority vote of the board of county commissioners, which shall
be entered into its minutes...", and
WHEREAS, Section 11-4(1) of the Home Rule Charter for Weld County, Colorado, states
as follows:
"The County Treasurer shall, with prudence, deposit available funds in accordance
with the statutes of the State of Colorado giving preference to Weld County financial
institutions", and
WHEREAS, the Board of County Commissioners of Weld County, Colorado, deems it in the
best interest of Weld County to designate the following banks and savings and loan associations as
depositories for the funds of Weld County:
The Bank of Colorado, Front Range Key Bank of Colorado
Bank One, Greeley Colorado National Bank
The Eaton Bank Farmers Bank
First Choice Bank First National Bank, Greeley
First National Bank, Johnstown First Northern Savings Bank
Norwest Bank Independent Bank, Greeley
Independent Bank, Kersey Independent Bank, Platteville
Union Colony Bank Commercial Federal Bank
Firstbank of Greeley Citizens State Bank, Keenesburg
First Security Bank, Ft. Lupton Platteville State Bank
Valley Bank, Frederick
WHEREAS, pursuant to Part 7 of Article 75 of Title 24, C.R.S., Weld County may pool any
moneys in its treasury which are not immediately required to be disbursed, with the same such
moneys in the treasury of other Colorado political subdivisions in order to take advantage of short-
term investments and maximize net interest earnings, and
960056
eL •
/,C ' /�G ; (M TR0016
RE: DEPOSITORIES FOR FUNDS
PAGE 2
WHEREAS, the Board of County Commissioners of Weld County, Colorado, deems it in the
best interest of Weld County to designate the following Colorado public asset pools as depositories
for the funds of Weld County:
Colorado Surplus Asset Fund Trust (CSafe)
Colorado Public Funds Investment Trust (Colofit)
Colorado Diversified Trust (CDT)
Colorado Local Government Liquid Asset Trust (Colotrust)
Colorado Statewide Asset Trust (Cswat)
Government Asset Pool (GAP)
Federated Investor's Treasury Obligations Fund and Government Obligations Fund
as invested through Colo-First
A.G. Edward's Centennial Government Trust
WHEREAS, pursuant to Part 6 of Article 75 of Title 24, C.R.S., the County Treasurer may
invest the funds in his custody or possession in those securities set forth in Section 24-75-601.1(1),
C.R.S.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the above and foregoing banks and savings banks be, and hereby are,
designated as depositories for the funds of Weld County.
BE IT FURTHER RESOLVED by the Board that the County Treasurer, Arthur L. Willis, be,
and hereby is, authorized and instructed to secure such deposits according to law as stated in
Section 30-10-708, C.R.S., as amended, and that this Resolution shall supersede previous
Resolutions of the Board regarding the same subject as discussed herein dated January 23, 1995,
and August 30, 1995.
BE IT FURTHER RESOLVED by the Board that the County Treasurer be, and hereby is,
authorized to pool such county funds as are not immediately required to be disbursed in the above
and foregoing Colorado public asset pools pursuant to Part 7 of Article 75 of Title 24, C.R.S., as
amended.
BE IT FURTHER RESOLVED by the Board that the County Treasurer be, and hereby is,
authorized to invest such county funds as are not immediately required to be disbursed in securities
as set forth in Section 24-75-601.1(1), C.R.S., as amended, which have a maturity date of five years
or less from the date of purchase, or if authorized by the Board, for such period in excess of five
years. The County Treasurer shall hold all such securities until their date of maturity, at which time
he is hereby authorized to redeem them and deposit or reinvest the proceeds in accordance with the
foregoing resolution, or he may sell such securities prior to their date of maturity at which time he
is thereby authorized to redeem them and deposit or reinvest the proceeds in accordance with the
provisions of this Resolution.
960056
TR0016
RE: DEPOSITORIES FOR FUNDS
PAGE 3
The above and foregoing Resolution was, on motion duly made and seconded, adopted by
the following vote on the 15th day of January, A.D., 1996.
BOARD OF COUNTY COMMISSIONERS
"N. WE D COUNTY, COLORApb
cos 4 A7TES1:^( MC44?
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Barbara J. Kirkmeyer, hair
Weld County Clerk to the Board I
�� Pcp- ��� eorge Baxter, P -T m
BY: Y r
Deputy Clerk tole Board
Dale K. Hall \
AS TO FO
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Constance L. Harbert,
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W. H Webster i
960056
TR0016
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TO: Board of County Commissioners
FROM: Bruce T. Barker, County Attorney
hiDe DATE: January 12, 1996
COLORADO RE: Authorization to Weld County Treasurer to Invest Weld
County Funds in Additional Money Market Fund
Art Willis, Weld County Treasurer, desires to have the Board of County Commissioners make some
changes to the Board's previous authorizations of his investments of Weld County's funds. On January
23, 1995, the Board of County Commissioners approved a resolution designating various banks, savings
banks, and public asset pools as depositories for Weld County's funds. A second resolution was passed
by the Board on August 30, 1995, authorizing Art to invest in two money market funds through Colo-
First. Now Art would like to have the authorization to invest Weld County's funds in the AG Edward's
Centennial Government Trust. A copy of the 1995 prospectus for the Trust is attached.
In my opinion, the investment policies and goals of the Trust meet the requirements of§24-75-601.1
(1)(k), C.R.S., as follows:
1. The Trust is registered as an investment company under the Federal "Investment
Company Act of 1940" as amended.
2. The investment policy of the Trust includes seeking to maintain a constant share price.
3. No sales or load fees is added to the purchase price or deducted from the redemption
price of the investments in the Trust.
4. The investments of the Trust consist only of securities with a maximum remaining
maturity as specified in rule 2a-7 under the Federal "Investment Company Act of 1940",
as amended, and the securities have the highest current credit rating from one or more
nationally recognized organizations.
5. The dollar weighted average portfolio maturity of the Trust meets the requirements
specified in Rule 2a-7 under the Federal "Investment Company Act of 1940", as
amended.
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Money Market Letter
Page 2
January 12, 1995
Art is also asking the Board of County Commissioners to increase the authorized maturity date to five
years. Such maturities are authorized pursuant to §24-75-601.1, C.R.S. The January 23, 1995,
authorizing resolution set the maturity at two years. Art's Memorandum dated December 5, 1995,
explains his reasons for the request to increase to five years.
I recommend that the Board approve the resolution on this subject which will be presented to the Board
January 15, 1996. It will supersede the previous authorizing resolutions dated January 23, 1995 and
August 30, 1995.
�_ __
Bruce arker,County Atto ey /
Attachments
pc Art Willis
M:\W PFILES\MEMO\BOCC\MONMKT.WI
960056
gAtar, MEMORANDUM
TO: Bruce Barker December 5, 1995
COLORADO From: Art Willis, Treasure
SUBJECT: Investment Resolution
Bruce,
I have enclosed a 1995 Prospectus for A.G. Edwards' Centennial Government Trust as we
discussed last week. An earlier e-mail attachment carried a copy of a revised Resolution for
your review. The rationale for extending the maturity to the statutory 5-year limit and allowing
the option of holding to maturity or selling a security before its maturity is to enlarge the
universe of securities to select from and to allow flexibility in an environment of changing
interest rates.
The yield curves for Treasuries and Agencies are inverted - meaning shorter term securities
(out to two years) are actually yielding a lower rate of return than those maturing two years and
longer. It makes sense to allow the County to invest in the higher yielding instruments from two
to five years maturity.
In addition, given the current environment of falling interest rates, the securities we can invest in
tend to increase in market value as rates drop, and vice versa. To be able to trade in and out of
positions in such an environment could provide increased revenue to the county without
exposing the County's portfolio to increased risk. Had some of this year's investments been
subject to sale prior to maturity, the county would have realized capital gains in excess of its
interest income.
Essentially, the changes proposed would merely allow the Treasurer to invest to the extent
allowed by statute and afford the county greater opportunity for equally safe income from its
investments.
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Centennial the Appendix.) The information in this Prospectus
should be read together with the information in the
Government Trust Appendix which is part of this Prospectus. Program par
ticipants should also read the description of the Pro-
3410 South Galena Street, Denver, Colorado 80231 gram provided by their broker
Telephone 1-800-525-9310
This Prospectus sets forth concisely information
Centennial Government Trust (the "Trust") is a no-load about the Trust that a prospective investor should
"money market" mutual fund with the investment know before investing. A Statement of Additional
objective of seeking a high current level of income Information about the Trust (the "Additional State-
consistent with preservation of capital and the main- ment"), dated November 1, 1995, has been filed with
tenance of liquidity. The Trust seeks to achieve this the Securities and Exchange Commission and is avail-
objective by investing in a diversified portfolio of able without charge upon written request,to Share-
short-term debt instruments issued or guaranteed by holder Services, Inc. (the "Transfer Agent"), PO. Box
the U.S. Government or its agencies or instrumentali- 5143, Denver, Colorado 80217-5113 or by calling the
ties and maturing in, or having been called for Transfer Agent at the toll-free number shown above.
redemption in, one year or less. See "The Trust and The Additional Statement (which is incorporated by
Its Investment Policies." reference in its entirety in this Prospectus) contains
An investment in the Tiust is neither insured nor more detailed information about the Trust and its
guaranteed by the US Government Shares of the Trust management.
are not deposits or obligations of any bank, are not
guaranteed by any bank, and are not insured by the Investors are advised to read and retain this Pro-
guaranteed
FDIC or any other agency While the Trust seeks to spec us for future reference.
maintain a stable net asset value of$1.00 per share, THESE SECURITIES HAVE NOT BEEN APPROVED
there can be no assurance that the Trust will be able OR DISAPPROVED BY TilE SECURITIES AND
to do so. See "The Trust and Its Investment Policies,"
EXCHANGE COMMISSION OR ANY STATE SF.CURI-
Shares of the Trust may be purchased directly from TIES COMMISSION NOR HAS THE SECURITIES
dealers having sales agreements with the Trust's Dis- AND EXCHANGE COMMISSION OR ANY STATE
tributor and also are offered to participants in Auto- SECURITIES COMMISSION PASSED UPON THE
matic Purchase and Redemption Programs (the "Pro- ACCURACY OR ADEQUACY OF THIS PROSPEC-
grams") established by certain brokerage firms with TUS. ANY REPRESENTATION TO THE CONTRARY
which the Trust's Distributor has entered into agree- IS A CRIMINAL OFFENSE.
ments for that purpose. (See "How to Buy Shares" in
This Prospectus is effective November 1, 1995
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I Trust Expenses expenses as custodial and transfer agent fees, audit
and legal and other business operating expenses, but
The following table sets forth the fees that an roves- excludes extraordinary expenses. For further details,
i tor in the Trust might pay and the expenses paid by see the Trust's financial statements included in the
the Trust during its fiscal year ended June 30, 1995. Additional Statement.
Shareholder Transaction Expenses
Maximum Sales Charge on Purchases The following example applies the above-stated •
(as a percentage of offering price) None expenses to a hypothetical $1,000 investment in
Sales Charge on Reinvested Dividends None shares of the Trust over the time periods shown below,
Redemption Fees None assuming a 5% annual rate of return on the invest-
ti
Exchange Fee None ment and also assuming that the shares are redeemed
Annual Trust Operating Expenses
at the end of each stated period.The amounts shown
R.
(as a percentage of average net assets) below are the cumulative costs of such hypothetical
Management Fees 0.48% $1,000 investment for the periods shown.
S. 12b-1 (Service Plan) Fees 0.20%
g Other Expenses 0.11% 1 year 3 years 5 years 10 years
Total Trust Operating Expenses 0.79% $8 $25 $44 $98
4 The purpose of this table is to assist an investor in This example should riot be considered o represen-
I understanding the various costs and expenses that an investorCation of past or future expenses or perlormonce.
in the Trust will bear directly (shareholder Expenses are subject to change and actual perlor-
4transaction expenses) or indirectly (annual trust oper- mance and expenses m ay he less or greater than those
ating expen,es). "Other Expenses" includes such illustrated oboue.
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Financial Highlights
Selected data for a share of beneficial interest outstanding throughout each period
The table below presents selected financial information about the Trust, including per share data and expense
ratios and other data based on the Trust's average net assets. This information has been audited by Deloitte &
Touche LLP independent auditors, whose report on the financial statements of the Trust for the fiscal year ended
June 30, 1995 is included in the Additional Statement.
Year Ended June 30,
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
PER SHARE OPERATING —DATA..
Net asset value.beginning of
year .51110 $1.00 $1.00 $1.00 $1.00 $1_00 $1.00 $1.00 $1.00 $1.00
Income from investment
operations—net investment
income and net realized gain
on investments .05 .03 .04 .04 .07 .08 .08 .06 .05 .07
Dividends and distributions
to shareholders (DS) (03) (04) (04) (07) (.08) (.08) (.06) (.05) (.07)
Net asset value,end of year $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURN,AT NET ASSET
VALUE" 4.93% 2.84% 2.98% 4.75% 6.86% 8.23% 8.16% 6.06% 5.27% 7.32%
RATIOS/SUPPLEMENTAL
DATA:
Net assets,end of year(in
thousands) $893.184 $613.443 $637,102 $574,717$533,154 $219,003$151,898 $90.035 $67,042 $78,550
Average net assets(in
thousands) $718681 $665,494 $633,017 $581,563$418,268$200,570$121,909$82,815 $74.084 $68,515
Number of shares
outstanding at end of
year(in thousands) 893,947 613,282 637,018 574,722 533.125 218,986 151,901 90,036 67.042 78,550
Ratios to average net assets:
Net Investment income 4.81% 2.79% 2.81% 4.38% 6.44% 7.75% 8.11% 5.94% 5.17% 6.59%
Expenses .80% .79% .79% .78% .79% .84% .85% .90% .96% .93%
1. Assumes a hypothetical initial investment on the business day before the first day of the fiscal period,
with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net
asset value calculated on the last business day of the fiscal period. Total returns are not annualized
for periods of less than one full year. Total returns reflect changes in net investment income only.
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Yield Information are not "fundamental" policies (as defined below)
unless a particular policy is identified as fundamen-
From time to time the "yield" and "compounded tal. The Board may change non-fundamental invest-
effective yield" of an investment in the Trust may be ment policies without shareholder approval. The
advertised. Both yield figures are based on historical Trust's investment objective is a fundamental policy
earnings per share and are not intended to indicate
future performance. The "yield" of the Trust is the In seeking its objective, the Trust invests principally
income generated by an investment in the Trust over in obligations issued or guaranteed by the U.S. Goy-
a seven-day period, which is then "annualized" In ernment or its agencies or instrumentalities and
annualizing, the amount of income generated by the maturing in twelve months or less from the date of
investment during that seven days is assumed to be purchase, or in repurchase agreements (described
generated each week over a 52-week period, and is below) under which such obligations are purchased.
shown as a percentage of the investment. The "com- The securities in which the Trust may invest may not
pounded effective yield" is calculated similarly, but yield as high a level of current income as longer-term
the annualized income earned by an investment in or lower-rated securities, which generally have less
the Trust is assumed to be reinvested. The "com- liquidity and experience greater price fluctuation.
pounded effective yield" will therefore be slightly
higher than the yield because of the effect of the Securities issued or guaranteed by the U.S. Govern-
higher
assumed reinvestment. See "Yield Information" in the ment include a variety of U-S. Treasury securities that
Additional Statement for additional information about differ only in their interest rates, maturities and dates
the methods of calculating these yields. of issuance.Treasury Bills have maturities of one year
or less.Treasury Notes have maturities of from one to
ten years and Treasury Bonds generally have maturi-
The Trust and Its Investment Policies ties of greater than ten years at the date of issuance.
U-S- Government agencies or instrumentalities which
The Trust is a no-load "money-market" fund. It is an issue or guarantee securities, also include, but are nut
open-end, diversified management investment com- limited to, the Federal Housing Administration, Farm-
pany organized as a Massachusetts business trust on ers Home Administration, Export-Import Bank of the
January 18, 1982. The Trust's investment objective is United States, Small Business Administration, Govern-
to seek high current income consistent with the pres- ment National Mortgage Association,General Services
ervation of capital and the maintenance of liquidity. Administration, Central Bank for Cooperatives, Fed-
The value of Trust shares is not insured or guaranteed eral Home Loan Bank, Federal Home Loan Mortgage
by any government agency. However, shares held in Corporation, Federal Intermediate Credit Bank, Fed-
brokerage accounts would be eligible for coverage by eral Land Bank, Maritime Administration, Tennessee
the Securities Investor Protection Corporation for Valley Authority, District of Columbia Armory Board,
losses arising from the insolvency of the brokerage Federal National Mortgage Association and the Stu-
firm.The Trust's shares may be purchased at their net dent Loan Marketing Association. The Trust will not
asset value, which will remain fixed at$1.00 per share invest in securities issued by the Inter-American
except under extraordinary circumstances (see Development Bank, the Asian- American Develop-
"Determination of Net Asset Value Per Share" in the ment Bank and the International Bank for Recon-
Additional Statement for further information). There struction and Development or in pooled mortgages
can be no assurance, however, that the Trust's net offered by the Federal Housing Administration or Vet-
asset value will not vary or that the Trust will achieve erans Administration.
its investment objective. In seeking its objective, the
Trust may invest in the types of instruments discussed Obligations of some U.S. Government agencies and
below. The Trust's investment policies and practices instrumentalities may not be supported by the full
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•
faith and credit of the United States.Some are backed ■ Board Approved Instruments. The Trust may
by the right of the issuer to borrow from the U.S. Trea- invest in obligations, other than those discussed
sury; others, such as the Federal National Mortgage above, approved by the Trust's Board of Trustees and
Association, by discretionary authority of the U.S. which are in accordance with the Trust's investment
Government to purchase the agencies' obligations; objective, policies and restrictions.
while-still others, such as the Student Loan Marketing
Association, are supported only by the credit of the Ratings of Securities
instrumentality. In the case of securities not backed Under Rule 2a-7 of the Investment Company Act of
by the full faith and credit of the United States, the 1940, as amended (the "Investment Company Act")
Trust must look principally to the agency issuing or the Trust uses the amortized cost method to value its
guaranteeing the obligation for ultimate repayment, portfolio securities to determine the Trust's net asset
and may not be able to assert a claim against the value per share. Rule 2a-7 places restrictions on a
United States itself in the event the agency or instru- money market fund's investments. Under the Rule,
mentality does not meet its commitments- the Trust may purchase only those securities that the
Certain Debt Obligations Trust's Board of Trustees has determined have mini-
- mal credit risks and are "Eligible Securities.-
The Trust may invest in variable rate notes, variable
rate master demand notes or in master demand notes With respect to ratings, an "Eligible Security' is (a)
(described in "Investment Objective and Policies" in one that has received a rating in one of the two high-
the Additional Statement) that meet the requirements est short-term rating categories by any two `nationally-
of Rule 2a-7 (discussed below). The Trust may also recognized statistical rating organizations" tas defined
purchase debt obligations which are Eligible Securi- in the Rule) ("Rating Organizations"), or it only one
ties, as defined below, and that either mature within Rating Organization has rated that security, by that
twelve months from the date of purchase or have Rating Organization, or (b) an nitrated security that
been called for redemption by the issuer, with such is judged by Centennial Asset Management Corpora-
redemption to be effective within one year. tion, the Trust's investment manager (the "Manager ),
to be of comparable quality to investments that are
■ Floating Rote/Vanah/e Rate Notes. Some of the "Eligible Securities" rated by Rating Organizations.
notes the Trust may.purchasemay have variable or The Rule permits the Trust to purchase `First 'net-
floating interest rates. Variable rates are adjustable at Securities' which are Eligible Securities rated in the
stated periodic intervals of no more than one year. highest rating category for short-term debt obligations
Floating rates are automatically adjusted according to by at least two Rating Organizations, or, if only one
a specified market rate for such investments, such as Rating Organization has rated-a particular security, by
the prime rate ot a bank, or the 91-day U-S- Treasury that Rating Organization, or comparable unrated
bill rate. The "[rust may purchase these obligations if securities. Under the Rule, the Trust may invest only
they have a remaining maturity of one year or less; up to 5% of its assets in "Second Tier Securities,-
if their maturity is greater than one year, they may be which are Eligible Securities that are not "First Tier
purchased if they have a demand feature that permits Securities." In addition to the overall 5% limit on Sec-
the Trust to recover the principal amount of the and Tier Securities,the Trust may not invest more than
underlying security at specified intervals not exceed- (i) 5% of its total assets in the securities ot any one
ing one year and upon not more than 30 days notice. issuer (other than the U.S. Government, its agencies
Such obligations may be secured by bank letters of or instrumentalities) or (ii) 1% of its total assets or $1
credit or other credit support arrangements. See million (whichever is greater) in Second her Securi-
"Floating Rate/Variable Rate Obligations" in the Addi- ties of any one.ssuer.The Trust's Board roust approve
tional Statement for more details. or ratify the purchase of Eligible Securities that are
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unrated or rated by only one Rating Organization. days. See "Repurchase Agreements" in the Additional
Additionally, under Rule 2a-7, the Trust must maintain Statement for further details.
a dollar-weighted average portfolio maturity of no
more than 90 days and the maturity of any single port- Loans of Portfolio Securities
folio investment may not exceed 397 days. Some of
the Trust's existing investment restrictions (which are To attempt to increase its income for liquidity pur-
fundamental policies that may be changed only by poses, the Trust may lend its portfolio securities to
shareholder vote) are more restrictive than the provi- qualified borrowers (other than in repurchase trans-
sions of Rule 2a-7. For example, as a matter of fun- actions) if the loan is collateralized in accordance
damental policy, the Fund may not invest in any debt with applicable regulatory requirements, and if, after
instrument having a maturity in excess of one year any loan, the value of the securities loaned does not
from the date of the investment.The Trust's Board has exceed 25%of the value of the Trust's total assets.The
adopted procedures under Rule 2a-7 pursuant to Trust will not enter into any securities lending agree
which the Board has delegated to the Manager cer- meats having a duration of greater than one year.Any
tain responsibilities, in accordance with that Rule, of securities received as collateral for a loan must
conforming the Trust's investments with the require- mature in twelve months or less. The Trust presently
ments of the Rule and those procedures does not intend that the value of securities loaned
will exceed 5% of the value of the Trust's net assets
Exhibit A of the Additional Statement contains in the coming year. See "Loans of Portfolio Securities"
additional information on the rating categories of Rat- in the Additional Statement for further information on
ing Organizations. Ratings at the time of purchase will securities loans.
determine whether securities may be acquired under
the above restrictions. Subsequent downgrades in rat-
investment tBfli RES1rtC110rS
ings may require reassessments of the credit risk pre-
sented by a security and may require its sale. See The Trust has certain investment restrictions which,
-Ratings of Securities" in "Investment Objective and together with its investment objective, are fundamen-
ftAicies" in the Additional Statement for further tai policies changeable only by the vote of a "major-
details- ity" (as defined in the Investment Company Act) of
the Trust's outstanding voting securities. Under some
Repurchase Agreements of those restrictions,the Trust cannot: (l) invest in any
'the Trust may acquire securities that are subject to security other than those discussed under "The Trust
repurchase agreements in order to generate income and Its Investment Policies," above; (2) enter into
while providing liquidity.The Trust's repurchase agree- repurchase agreements maturing in more than seven
' merits must comply with the collateral requirements days or purchase securities which are restricted as to
' of Rule 2a-7.If the vendor fails to pay the agreed-upon resale or for which market quotations are not readily
repurchase price on the delivery date, the Trust's risks available, if any such investment would cause more
may include any costs of disposing of such collateral, than 10% of the Trust's assets to be invested in such
and any loss resulting from any delay in foreclosing securities; (3) borrow money in excess of 10% of the
on the collateral. There is no limit on the amount of value of its total assets, and then only as a temporary
the Trust's net assets that may be subject to repur- measure for extraordinary or emergency purposes;
chase agreements having a maturity of seven days or provided that the Trust will not make any investment
less. The Trust ordinarily will not enter into a repur- at a time during which such borrowing exceeds 5%
chase agreement that will cause more than 10% of its of the value of its assets; no assets of the Trust may
net assets at the time of purchase to be subject to be pledged, mortgaged or assigned to secure a debt:
repurchase agreements maturing in more than seven (4) make loans, except through CO the purchase of
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debt securities listed under The Trust and Its Invest- more than one year from the date of the investment.
ment Policies," (ii) the purchase of such debt secu- The percentage restrictions described above and in
rities subject to repurchase agreements, or (iii) loans the Additional Statement are applicable only at the
of securities as described under "Loans of Portfolio time of investment and require no action by the Trust
Securities,"above; or (5) invest in any debt instru- as a result of subsequent changes in value of the
ment having a maturity in excess of one year from the investments or the size of the Trust. A supplementary
date of the investment, or, in the case of a debt instru- list of investment restrictions is contained in the Addi-
ment subject to a repurchase agreement or called for tional Statement.
redemption, having a repurchase or redemption date
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