All investments shall conform to the “Prudent Man” rule governing trust investments under
Colorado law, the Statement of Financial Accounting Standards #124, the Accounting for Certain
Investments Held by Not-For-Profit Organizations, and the Colorado Uniform Prudent Investors Act.
Investment of the funds shall be limited to the following categories:

Eligible Investments

Investments shall be limited to the following:

  1. U.S. government obligations unconditionally guaranteed by the U.S. government or
    secured by the escrow of U.S. government obligations, Government Agencies with
    the proper power of attorney in case of default by the depository.
  2. Negotiable certificates of deposit issued by approved banking institutions and credit
    unions and backed by Federal Deposit Insurance Corporation (FDIC – banks) or
    National Credit Union Association (NCUA – credit unions) protection. The amounts
    deposited in any one institution generally shall be limited to the amount of available
    FDIC/NCUA protection or securable by U.S. Treasury obligations held by the
    depository institution.
  3. Obligations of U.S. government agencies exclusive of their derivatives.
  4.  Mutual funds including money market accounts which invest in securities allowed in
    this statement.
  5. Corporate fixed income securities must be of investment grade or better at the time
    of must be of investment grade or better at the time of investment, as rated by the
    two predominant rating agencies.
  6. Equity investments (U.S. and foreign-based companies), directly held or through
    pooled funds. Mutual funds which invest in securities as allowed in this statement;
    these may include foreign securities up to 25% of the mutual fund’s portfolio.
  7. Real estate (via REITs or other pooled vehicles).
  8. Stock Index Funds.

Excluded Categories for Investment

  1. Equipment leasing
  2. Uncollateralized loans
  3. Investments with insiders
  4. Private equity or debt
  5. Directly held derivative securities
  6. Commodities
  7. Futures
  8. Speculative Options