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16 <br />G. Bankers' Acceptances provided that the accepting bank or its holding company is either (1) <br />incorporated in the State of North Carolina or (2} has outstanding publicly held obligations <br />bearing the highest rating of at least one nationally recognized rating service and not bearing a <br />rating below the highest (Aaa or AAA) by any nationally recognized rating service which rates <br />the particular obligations. <br />H. Participating shares in a mutual fund for local government investment (such as the N.C. <br />Cash Management Trust) which is certified by the N.C. Local Government Commission. <br />AaM[NISTRAT[VE RESTRICT[~NS <br />[n addition to the previously noted limitations on appropriate securities, Grange County's <br />investment activities are further restricted in the following manner: <br />A. It is the policy of Grange County to diversify its investment po~fo[io. Assets held shat[ be <br />diversified to eliminate the risk of loss resulting from the over concentration of assets in a <br />specific maturity, a specific issuer or a specific class of securities. Diversification shall be <br />determined and revised periodically by the Investment officer. Po~folio maturities shat[ be <br />staggered to avoid undue concentration of assets in a specific maturity sector. Maturities <br />selected shall provide for stability of income and reasonable liquidity. <br />B. Grange County recognizes that investment risks can result from issuer defaults, market <br />price changes or various technical complications leading to temporary illiquidity. Portfolio <br />diversification is employed as a way to minimize default risk. No individual investment <br />transaction shall be undertaken that jeopardizes the capital position of the overall por~o[ia. In <br />the event of a default by a specific issuer, the Financial Services Director shat! review and, if <br />appropriate, proceed to liquidate securities having comparable credit risks. <br />C. No investments in Repurchase Agreements shall be made unless the underlying collateral <br />shat[ be placed in safekeeping in the trust department of a third-parfiy designated by the <br />County. <br />D. The combined total investment in commercial paper and bankers' acceptances shall not <br />exceed thirty five percent X35°/0} of the total portfiolio and the investment in commercial paper <br />ar bankers' acceptances of a single issuer shall not exceed X35%} of the total po~folio at the <br />time of investment. <br />E. No investment shall be made in any security with a maturity greater than five (5) years from <br />the date of purchase. <br />3 <br />