Utah Administrative Code
The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).
NOTE: For a list of rules that have been made effective since January 1, 2020, please see the codification segue page.
NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.
R628. Money Management Council, Administration.
Rule R628-17. Limitations on Commercial Paper and Corporate Notes.
As in effect on January 1, 2020
Table of Contents
- R628-17-1. Authority.
- R628-17-2. Scope.
- R628-17-3. Purpose.
- R628-17-4. Definitions.
- R628-17-5. General Rule.
- Date of Enactment or Last Substantive Amendment
- Notice of Continuation
- Authorizing, Implemented, or Interpreted Law
This rule is issued pursuant to Section 51-7-18(2)(b).
This rule establishes limits on the dollar amount of public funds that a public treasurer may invest in commercial paper or corporate obligations of a single issuer.
The purpose of this rule is to provide guidelines for treasurers when investing public funds in commercial paper or corporate obligations. The guidelines established by this rule are designed to be flexible enough to allow public treasurers to receive competitive market rates on funds placed in these types of investment instruments while maintaining sufficient protection from loss.
For the purpose of this rule:
Commercial paper means: an unsecured promissory note that matures on a specific date, and is issued by industrial, utility, and finance companies. The commercial paper must meet the criteria for investment as described in Section 51-7-11(3).
Corporate obligation means: A secured or unsecured note with original term to maturity ranging from nine months to thirty years that is issued by an industrial, utility or finance company. The corporate obligation must meet the criteria for investment as described in Section 51-7-11(3).
The maximum amount of any public treasurer's portfolio which can be invested in a single issuer of commercial paper and corporate obligations shall be as follows:
1. Portfolios of $10,000,000 or less may not invest more than 10% of the total portfolio with a single issuer.
2. Portfolios greater than $10,000,000 but less than $20,000,000 may not invest more than $1,000,000 in a single issuer.
3. Portfolios of $20,000,000 or more may not invest more than 5% of the total portfolio with a single issuer.
The amount or percentages used in determining the amount of commercial paper and or corporate obligations a treasurer may purchase, shall be determined by the book value of the portfolio at the time of purchase.
public investments, securities, securities regulations
January 9, 2007
March 30, 2017
For questions regarding the content or application of rules under Title R628, please contact the promulgating agency (Money Management Council, Administration). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.