The following investments and investment practices are hereby prohibited:
   (a)   Investment in derivatives or in no-load money market mutual funds that invest in derivatives. Any security that is based upon an issue of the United States Treasury or an obligation of a Federal agency is a derivative. However, a security issued by the U.S. Treasury, other Federal agency or instrumentality, the State of Ohio or any political subdivision of the State is not considered to be a derivative, even though it has a variable interest rate based upon a single interest payment or single index consisting of other securities issued or guaranteed by the United States, provided that such variable interest rate investment has a maximum maturity of two years.
   (b)   Investments in stripped principal or interest obligations.
   (c)   Investments in a fund established by another county, subdivision, treasurer or governing board for the purpose of investing the public funds of other subdivisions, other than STAR Ohio and funds established to acquire, construct, lease or operate a municipal utility.
   (d)   Repurchase agreements whereby the Fiscal Officer agrees to repurchase securities (reverse repos).
   (e)   Sale of taxable notes for the purpose of arbitrage.
   (f)   Use of current investment assets as collateral to purchase other assets.
   (g)   Contracting to sell securities that have not yet been acquired on speculation that bond prices will decline.
(Res. 213-96.  Passed 12-6-96.)