70-07 Investment of Surplus Funds

Policy Description

Florence-Darlington Technical College (FDTC) recognizes the need for investing of funds and provides this policy as guidance to ensure compliance with state laws and constitutional requirements with regard to investment. This policy would apply to all funding sources as used by the technical colleges.

(A) Investment Guidelines: Funds may be invested in accordance with 11-9-660 of the South Carolina Code of Laws either through the State Treasurer’s Office or individually by each college. The following are allowable investments:

(1) obligations of the United States, its agencies and instrumentalities;

(2) obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, the African Development Bank, and the Asian Development Bank;

(3) obligations of a corporation, state, or political subdivision denominated in United States dollars, if the obligations bear an investment grade rating of at least two nationally recognized rating services;

(4) certificates of deposit, if the certificates are secured collaterally by securities of the types described in items (1) and (3) of this section and held by a third party as escrow agent or custodian and are of a market value not less than the amount of the certificates of deposit so secured, including interest; except that this collateral is not required to the extent the certificates of deposit are insured by an agency of the federal government;

(5) repurchase agreements, if collateralized by securities of the types described in items (1) and (3) of this section and held by a third party as escrow agent or custodian and of a market value not less than the amount of the repurchase agreement so collateralized, including interest;

(6) guaranteed investment contracts issued by a domestic or foreign insurance company or other financial institution, whose long-term unsecured debt rating bears the two highest ratings of at least two nationally recognized rating services;

(7) South Carolina State Treasurer's Office Local Government Investment Pool (LGIP).

(B) The Technical Colleges may contract to lend securities invested pursuant to this policy.

(C) The Technical Colleges shall not invest in obligations issued by any country or corporation principally located in any country which the United States Department of State determines commits major human rights violations based on the Country Reports on Human Rights Practices by the Bureau of Democracy, Human Rights and Labor of the U.S. Department of State.