Section 15.13. Short-term investment funds

Short-term investment funds may be operated on a cost rather than market value basis for purposes of admissions and withdrawals, if the plan of operation satisfies the following conditions:

(1) Investments shall be limited to bonds, notes, or other evidences of indebtedness which are payable on demand—including variable amount notes—or which have a maturity date not exceeding 91 days from the date of purchase. Twenty percent of the value of the fund may be invested in longer term obligations.

(2) The difference between the cost and anticipated principal receipt on maturity shall be accrued on a straight-line basis.

(3) Assets of the fund shall be held until maturity under usual circumstances.

(4) After effecting admissions and withdrawals, not less than 20% of the value of the remaining assets of the fund shall be composed of cash, demand obligations and assets that will mature on the fund’s next business day.

The provisions of this § 15.13 adopted January 10, 1986, effective January 11, 1986, 16 Pa.B. 128.