AZ HB2028

Amends Arizona Revised Statutes Section 35-324 regarding the investment of trust funds by the State Treasurer.

Allows the treasurer to invest trust fund monies in securities permitted for public money investment and fixed income securities of U.S. corporations rated in the two highest categories by Moody's Investors Service and Standard and Poor's rating service.

Permits securities from permanent endowment funds to be loaned to the financial community if collateral securities with market value between 102% and 110% of par value are transferred to the treasurer, with collateral valued weekly.

Allows permanent endowment securities to be sold below par or cost if reinvestment proceeds will recover the dollar loss through incremental yield within the recovery period.