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<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Times New Roman","serif"">“It has come to the Oregon Short Term Fund Board’s attention that some local governments have language in their respective Investment Policies that restrict purchases
of US Treasury, Agency, and Instrumentality obligations only to those rated triple-A. Consequently, the downgrade of senior US Government obligations by Standard & Poor’s to double-A has severely restricted the investment options of these local governments.
ORS 294.035(3)(a) allows investment in “Lawfully issued general obligations of the United States, the agencies and instrumentalities of the United States or enterprises sponsored by the United States Government and obligations whose payment is guaranteed by
the United States, the agencies and instrumentalities of the United States or enterprises sponsored by the United States Government.” Given the significant liquidity advantages of US Treasury and Agency obligations and that ORS 294.035 does not discriminate
based on ratings, the OSTF Board does not consider Investment Policy revisions adjusting for the Standard & Poor’s downgrade to require board approval. ”<o:p></o:p></span></b></p>
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<p class="MsoNormal"><b><span style="font-size:14.0pt;font-family:"Times New Roman","serif"">If you have any questions, please contact Tom Lofton at (503) 378-4111<o:p></o:p></span></b></p>
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