§ 23-3.1-216 — Investment of funds

Colorado § 23-3.1-216

• Jurisdiction: Colorado
• Title 23: Postsecondary Education
• Art.: Student Loan Program

Text

(1) Moneys of the authority held in the
collegeinvest fund created in section 23-3.1-205.4 shall be invested as provided in
section 23-3.1-205.4 (3). Other moneys of the authority may be invested in property
or securities in which the state treasurer may legally invest moneys subject to his or
her control. The authority may sell the securities and may deposit the securities in a
trust bank within or without the state. Any moneys deposited in a banking
institution or a depository authorized in section 24-75-603, C.R.S., shall be secured
in such a manner and subject to the terms and conditions as the board may
determine, with or without payment of any interest on the deposit, including,
without limitation, time deposits evidenced by certificates of deposit.

(2) The board may direct a corporate trustee that holds moneys of the
authority pursuant to a trust indenture or other agreement between the trustee and
the authority to invest or reinvest the moneys in any investments, other than those
specified in subsection (1) of this section, if the board determines that, as of the
date of the determination, the investment meets the standards for investments
established in section 15-1-304, C.R.S.

(3) In addition to the investments otherwise permitted in this part 2, the state
treasurer may invest moneys in the prepaid expense trust fund in the following:

(a) State and municipal bonds;

(b) Corporate notes, bonds, and debentures, whether or not convertible, to
the extent provided for in paragraph (d) of this subsection (3);

(c) Participation agreements with life insurance companies;

(d) Common or preferred stock; except that:

(I) No investment of moneys in the prepaid expense trust fund in common or
preferred stock, or both, of any corporation shall be of an amount that exceeds five
percent of the market value of investable assets of the trust fund; except that, such
amount may exceed five percent, for a period not to exceed sixty consecutive days;

(II) The prepaid expense trust fund shall not acquire more than five percent
of the outstanding stock or bonds of any single corporation; and

(III) The aggregate amount of moneys of the prepaid expense trust fund
invested in common or preferred stock, or in corporate bonds, notes, or debentures
that are convertible into common or preferred stock, or in investment trust shares
shall not exceed sixty percent of the market value of investable assets of the
prepaid expense trust fund; except that such market value of investable assets may
exceed sixty percent, by not more than five percent, for a period not to exceed sixty
consecutive days;

(d.5) Investments in the form of mutual funds; and

(e) Any guaranteed investment contract, guaranteed interest contract,
annuity contract, or funding agreement if the board determines by resolution that:

(I) Such contract or agreement meets the standard for investments
established in section 15-1-304, C.R.S.;

(II) The income on such contract or agreement is at least comparable to the
income then available on the other investments permitted in this section; and

(III) Such contract or agreement will assist the authority in maintaining an
actuarially sound trust fund.

Legislative History

Source: L. 79: Entire article added, p. 821, � 1, effective July 1. L. 81: Entire section amended, p. 1090, � 3, effective May 28. L. 83: Entire section amended, p. 786, � 4, effective April 29. L. 89: (1) amended, p. 1108, � 13, effective July 1. L. 96: (3) added, p. 428, � 8, effective April 22. L. 2000: Entire section amended, p. 1283, � 11, effective May 26. L. 2004: (1) amended, p. 153, � 65, effective July 1; (1) amended, p. 572, � 20, effective July 1. L. 2008: (1) and (2) amended, p. 206, � 6, effective August 5.