INVESTMENT AGREEMENTS/GIC’S

• Obligation of rated counterparty to pay agreed upon rate and return funds at agreed upon times
   

• Usually fully flexible draws, fixed rate & downgrade protection
   

• Highest yield
   

• Not marked to market
   

• No ongoing maintenance needed
   

• All fees paid at closing
   

• Fixed and variable rates
   

• Not subject to being marked to market
   

• Can accept future deposits

FLEXIBLE REPURCHASE AGREEMENTS

• Can be viewed as an investment agreement backed by Treasuries and agency securities.
   

• Usually fully flexible draws & downgrade protection
   

• Same features as an investment agreement with U.S. Treasury and agency securities to enhance repurchase agreement provider credit
   

• Flexible draws
   

• Fixed and variable rates
   

• Not subject to being marked to market
   

• Can accept future deposits

LADDERED

PORTFOLIOS

• Purchase of a portfolio of securities structured to provide funds on or before the date funds will be needed
   

• Easy to obtain
   

• Simple to monitor
   

• If only treasuries then no counterparty risk, if agencies are included minimal counterparty risk

DEFEASANSE EXCROWS

• Purchase of a portfolio of securities structured to provide funds on or before the date funds will be needed
   

• Easy to obtain, no oversight needed
   

• Traditional and crossover refundings