Adopted October 4, 2007
Amended February 4, 2009, September 11, 2013, September 2, 2014, September 5, 2018 and September 4, 2020
These investment guidelines (the “Guidelines”) are adopted by the Board of Directors of TSASC, Inc. (the "Corporation").
These Guidelines specify the policies and procedures relating to the investment, monitoring and reporting of funds of the Corporation. For purposes of these Guidelines, funds of the Corporation are all moneys and other financial resources available for investment by the Corporation on its own behalf or on behalf of any other entity or individual. All such moneys shall be invested at all times to the fullest extent practicable, and in accordance with the requirements and restrictions set forth in these Guidelines.
Review and Amendment
These Guidelines shall be reviewed and approved by the Board of Directors annually and may be amended by the Board of Directors from time to time.
All investments shall be invested in Eligible Investments as defined in the Amended and Restated Indenture, dated as of December 1, 2016, amending and restating the Indenture dated as of November 1, 1999, as previously amended and restated as of January 1, 2006, by and between the Corporation and The Bank of New York, as trustee (the “Trustee”).
All investments shall mature or be redeemable at the option of the holder no later than such times as shall be necessary to provide moneys needed for payments to be made from any fund or account in which such investments are held.
During any calendar quarter, no more than the greater of $15 million or 35% of the total amount of the Corporation’s investments (determined at the time of investment) shall be invested in either Commercial Paper of a single issuer or Investment Agreements with a single provider.
Payment for Securities
Payment for investments shall be made only upon receipt of the securities purchased. In the case of book entry form securities, payment may be made only when the custodian's account at the Federal Reserve Bank is credited for the purchased securities.
The following are the standards for the qualifications of brokers, agents, dealers, investment advisors, investment bankers and custodians:
With the exception of forward purchase and delivery agreements, the Corporation shall not be required to enter into written contracts for the purchase of investments, except when the Corporation at its discretion agrees that it is in its best interest to do so.
The President or other Authorized Officer shall prepare and deliver to the Board of Directors once for each quarter of the Corporation's fiscal year a report setting forth a summary of new investments made during that quarter, the inventory of existing investments and the selection of investment bankers, brokers, agents, dealers, investment advisors and auditors.
Annually, the Board shall review and approve these Investment Guidelines.
Nothing contained in these Investment Guidelines shall be deemed to alter, affect the validity of, modify the terms of or impair any contract, agreement or investment of funds made or entered into in violation of, or without compliance with, the provisions of these Investment Guidelines.