Eligible investments.

CFR · 2024-01-01 · US · Title 12

(a) (i) The investment must be purchased and held for one or more investment purposes authorized in § 615.5132. (ii) The investment must be one of the following: (A) A non-convertible senior debt security; (B) A money market instrument with a maturity of 1 year or less; (C) A portion of an MBS or ABS that is fully guaranteed as to the timely payment of principal and interest by a U.S. Government agency; (D) A portion of an MBS or ABS that is fully and explicitly guaranteed as to the timely payment of principal and interest by a GSE; (E) The senior-most position of an MBS or ABS that a U.S. Government agency does not fully guarantee as to (F) An obligation of an international or multilateral development bank in which the U.S. is a voting member; or (G) Shares of a diversified investment fund registered under the Investment Company Act of 1940, if its portfolio consists solely of securities that satisfy paragraph (a)(1)(ii)(A), (B), (C), (D), (E), or (F) of this section, or are eligible under § 615.5174. The investment company's risk and return objectives and use of derivatives must be consistent with the Farm Credit bank's investment policies. (iii) At least one obligor of the investment must have very strong capacity to meet its financial commitment for the expected life of the investment. If any obligor whose capacity to meet its financial commitment is being relied upon to satisfy this requirement is located outside the U.S., either: (A) That obligor's sovereign host countr

official document · source cfr-2024 · id 12:§ 615.5140