| A pool may invest surplus money not needed for immediate cash needs under the following conditions:
1. Investments are limited to:
a. United States Government bonds;
b. United States Treasury notes;
c. Municipal and corporate bonds described under subsections (A)(2), (3), and (4);
d. Certificates of deposit;
e. Savings accounts in banks located in Arizona that are federally insured; and
f. Common or preferred stock.
2. Corporate and municipal bonds are restricted to the top 3 major investment grades as determined by 2 financial rating services;
3. Not more than 5% of a corporate municipal bond portfolio is invested in any 1 corporation or municipality;
4. Not more than 30% of the market value of a portfolio is in corporate and municipal bonds;
5. Not more than 20% of the market value of an investment portfolio is in common and preferred stocks; and
6. Not more than 5% of a common and preferred stock portfolio is invested in any 1 corporation.
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