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Policy:

EASFAA resources are to be invested to produce maximum income while protecting principal.

Procedures:

1. Resources are to be invested to yield substantially greater returns than are paid by typical passbook accounts. The investments do not need to be guaranteed or insured but should be conservative and have a substantial history for reliability. Such things as CD's with sound banks, commercial paper, money market funds and short-term government bonds (such as 91-day, 6-month and 1-year Treasuries) are ideal for consideration.
2. The Treasurer is responsible for estimating the cash flow needs of the Association and, thus, the amounts of money available for investment and the lengths of the investments.
3. The Budget Committee is responsible for approving the Association's investment strategy and should review and approve the strategy at least annually, and more often if economic conditions warrant.
4. The Treasurer is responsible for implementing the approved investment strategy, using professional advise and assistance as necessary.

Approved:

February 1994

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