396.8615 - Investment and reinvestment of pledged revenues and proceeds of securities issued in investment contract collateralized with securities issued by Federal Government. - Nevada Statutes

396.8615  Investment and reinvestment of pledged revenues and proceeds of securities issued in investment contract collateralized with securities issued by Federal Government.  In addition to the investments permitted by NRS 396.861, the Board, subject to any contractual limitations from time to time imposed upon the University by any resolution authorizing the issuance of outstanding securities or by any trust indenture or other proceedings appertaining thereto, may cause to be invested and reinvested, except as otherwise provided in NRS 396.876, any pledged revenues and any proceeds of securities issued hereunder in an investment contract that is collateralized with securities issued by the Federal Government or agencies of the Federal Government if:

      1.  The collateral has a market value of at least 102 percent of the amount invested and any accrued unpaid interest thereon;

      2.  The University receives a security interest in the collateral that is fully perfected and the collateral is held in custody for the University or its trustee by a third-party agent of the University which is a commercial bank authorized to exercise trust powers;

      3.  The market value of the collateral is determined not less frequently than weekly and, if the ratio required by subsection 1 is not met, sufficient additional collateral is deposited with the agent of the University to meet that ratio within 2 business days after the determination; and

      4.  The party with whom the investment contract is executed is a commercial bank, or that party or a guarantor of the performance of that party is:

      (a) An insurance company which has a rating on its ability to pay claims of not less than “Aa2” by Moody’s Investors Service, Inc., or “AA” by Standard and Poor’s Ratings Services, or their equivalent; or

      (b) An entity which has a credit rating on its outstanding long-term debt of not less than “A2” by Moody’s Investors Service, Inc., or “A” by Standard and Poor’s Ratings Services, or their equivalent.

      (Added to NRS by 2001, 2648)