Montana Board of Housing, a Component Unit of the State of Montana Financial-Compliance Audit for the Two Fiscal Years Ended June 30, ... 2006 Nov

Cover Montana Board of Housing, a Component Unit of the State of Montana Financial-Compliance Audit for the Two Fiscal Years Ended June 30, ... 2006 Nov
Montana Board of Housing, a Component Unit of the State of Montana Financial-Compliance Audit for the Two Fiscal Years Ended June 30, ... 2006 Nov
Montana. Legislature. Legislative Audit Division
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**Cash deposits are held at the trustee banks. Based on the opinion of the Board's bond counsel, these funds are insured by the FDIC on a pass-through basis to the owners of mortgage bonds. Thus, each individual bondholder is entitled to $1 00,000 of insurance coverage.
Page A-12 MONTANA BOARD OF HOUSING NOTES TO THE FINANCIAL STATEMENTS (continued) June 30, 2006 and 2005 NOTE 3. SECURITIES LENDING The Board of Housing invests in the State's Short-Term Investment Pool. As part of the pool admin
...istered by the Board of Investments (BOI), the Board participates in securities lending transactions. Under GASB 28, the following disclosures are required: Under the provisions of state statutes, the BOI has, via a Securities Lending Authorization Agreement, authorized a custodial bank, State Street Bank and Trust, to lend the BOI's securities to broker-dealers and other entities with a simultaneous agreement to return the collateral for the same securities in the future. During the period the securities are on loan, BOI receives a fee and the custodial bank must initially receive collateral equal to 102% of the fair value of the loaned securities and maintain collateral equal to not less than 100% of the fair value of the loaned security.

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