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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