(a) To provide for the safety and liquidity of the State Treasury Money Management Trust, the investment portfolio will be subject to the following restrictions:

1. (1) The average maturity of the total portfolio will not exceed sixty (60) days;

2. (2) The stated maturity of any security will not exceed three hundred ninety-seven (397) days, with the exception of the following:

   1. (A) Securities used as collateral in repurchase agreements; and
   2. (B)

(i) United States agency mortgage-backed securities, collateralized mortgage obligations, and municipal bonds that return principal in scheduled payments prior to final maturity shall not have, at the time of purchase, an average life exceeding three hundred ninety-seven (397) days using average life assumptions while employing Prepayment Speed Assumption and/or Conditional Prepayment Rate analysis models.

1. (ii) Securities for which average life at the time of purchase is used shall not have a stated final maturity beyond two (2) years;
2. (3) No investment in corporate debt shall be made in any single issuer that, at the time of purchase, exceeds five percent (5%) of the total assets of the trust, including both commercial paper and bonded debt of that issuer; and
3. (4) The maturity of repurchase agreements will be calculated by the date of repurchase, not the maturity of the underlying instrument.

(b) Investments in nongovernment securities will not exceed the following percentages of the total portfolio: Total Debt of Corporations, including Bonds and Commercial Paper* 30% *Second-tier Commercial Paper — including but not limited to Commercial Paper rated A2 by Standard and Poor’s Ratings Services, and P2 by Moody’s Investors Service — may not exceed 5% of the Total Portfolio.

1. (c) Repurchase agreements will be subject to the following additional restrictions:
2. (1) Transactions will be documented with master repurchase agreements;
3. (2) Securities accepted as collateral will be readily marketable;
4. (3) Repurchase agreements with any primary dealer or financial institution will not exceed ten percent (10%) of the total portfolio; and

5. (4) Repurchase agreements will not exceed one hundred eighty (180) days, and the share of the portfolio allocated to repurchase agreements with maturities beyond thirty (30) days will not exceed thirty percent (30%) of the total portfolio.

   1. (d)
6. (1) Pursuant to Arkansas Code § 25-1-501 et seq., effective August 1, 2017, a public entity shall not invest in companies that boycott Israel.
7. (2) In a good-faith effort to comply with this law, the State Treasury may rely on the list of entities that boycott Israel.
8. (3) That list is published by the New York Office of General Services and may be located online at the following web address: https://www.ogs.state.ny.us/eo/157/Docs/EO157_Institutions_Companies_List.pdf.

(e) All purchases and sales of securities shall be made with the goals of:

1. (1) Obtaining the optimal price and value for securities; and
2. (2) Not showing preference for any securities broker.

(f)

1. (1) Pre-trade analysis shall be performed for all bond purchases and sales.
2. (2) Where appropriate, that analysis should include market conditions, how the security fits the State Treasury’s investment strategy, and any other securities reviewed at the time of execution.