Wyo. Code R. 004-0004-2
Effective Date: 01/18/2025 to Current
Rule Type: Current Rules & Regulations
Reference Number: 004.0004.2.01182025
The purpose of these rules is to set forth procedures for the operation of a second local investment pool with more long-term redemption options than the local investment pool established under Wyoming Statute 9-1-416, pursuant to the provisions of Wyoming Statute 9-4-831(a)(xxvii) and W.S. 9-1-416.
These rules are adopted pursuant to W.S. 9-1-416 and W.S. 9-4-831(a)(xxvii).
(a) 'Early Withdrawal' means withdrawal of funds by the Pool Participant before the next Transaction Day.
(b) 'Electronic Transfer' means an Automated Clearing House (ACH) Transfer.
(c) 'Holdback' means an amount up to 10% of the total value of a Pool Participant's withdrawal.
(d) 'Long-Term Local Investment Pool' or 'Pool' is a common fund with long-term redemption options maintained by the Pool Administrator consisting of deposits from Pool Participants.
(e) 'Notification Date' means the date five (5) business days before the Transaction Day on which a Participant expects to make a Transfer.
(f) 'Notification Time' means 5:00 pm Mountain Time on the Notification Date.
(g) 'Pool Administrator' is the Wyoming State Treasurer.
(h) 'Pool Participant' or 'Participant' shall be any county, municipality, school district, joint powers board or any other local governmental entity.
(i) 'Transaction Day' means the day or days each quarter that a Participant may make a transaction, which unless otherwise designated by the Pool Administrator, shall be the tenth (10th) day of February, May, August and November.
(j) 'Transfer' means a Pool Participant's deposit or a withdrawal.
(a) The Long-Term Local Investment Pool shall have separate accounts maintained for each Pool Participant, but all monies will be co-mingled for investment purposes.
(b) No Pool Participants shall have a claim on any specific asset of the Pool, but shall have an undivided interest based on the proportion of that Participant's cash balance as a percentage of the total cash balance of the Pool.
(c) Participant funds shall only be invested in the Pool.
(d) Early withdrawal subjects the withdrawing Pool Participant to a penalty as provided in Section 12 of these rules.
(a) All income earned by the Pool, minus fees as provided in Section 11 of this Chapter of these rules, will be distributed to Participants.
(b) Income will be calculated on each Participant's average daily cash balance in the Pool.
(c) Interest will be calculated and credited to the principal of each Participant account by the fifteenth day of March, June, September and December. Each Participant will have the benefit of daily compounding of interest regardless of the date on which its account balance is adjusted and reported.
The minimum transfer amount for deposit to and withdrawal from the Pool by any Participant shall be twenty-five thousand dollars ($25,000.00) unless otherwise designated in writing by the Pool Administrator.
(a) Transfers shall be made only by Electronic Transfer.
(i) Deposits are credited to the Participant on the day funds are available for investment.
(ii) Withdrawals, except those amounts subject to a Holdback as determined by the Pool Administrator, are available on the effective date of the transaction. Any Holdback amount shall be held by the Pool Administrator until the completion of the reconciliation of all accounts at the end of the quarter immediately following the withdrawal, at which time an amount reflecting any adjustments due to fees, costs, valuation changes and/or other prudent accounting adjustments will be remitted to the Pool Participant.
(iii) Transfers shall be made only between the Participant and the Pool Administrator. Third-party transfers are prohibited.
(b) All costs of Electronic Transfers shall be borne by the Participant.
(c) Each Participant must provide complete instructions for Transfers.
Section 8. Notice of Transaction.
Pool Participants must provide notice of any Transfer through the Pool Administrator's designated electronic portal by the Notification Time on the Notification Date.
Section 9. Reporting Requirements.
(a) Pool Participants shall have an electronic means of confirming Transfers. (b) The Pool Administrator shall report cash balances quarterly. (c) The Pool Administrator shall provide an interest earnings statement quarterly. (d) The Pool Administrator shall respond to all Participant audit confirmations.
Section 10. Risk.
(a) Pool Participants acknowledge there is risk associated with investing in the Pool. The Pool does not have a guaranteed rate of return, and Participants expose their investments to losses as well as gains. All risks associated with the Pool are assumed by the Participant.
(b) Nothing in these Rules shall be construed to require the State of Wyoming to reimburse Pool Participants for any losses that may occur on investments.
Section 11. Fees.
The Pool Administrator shall charge Pool Participants for the investment, banking, and administrative fees which the Pool Administrator has incurred in providing the Long-Term Investment Pool.
Section 12. Penalty.
The Pool Administrator may impose a five percent (5%) penalty for Early Withdrawal.