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Indian River County, Florida Notes To Financial Statements Year Ended September 30 , 2007 NOTE 4 - CASH AND CASH EQUIVALENTS - Continued C . Investments - Continued Interest Rate Risk The County ' s investment policy limits interest rate risk by attempting to match investment maturities with known cash needs and anticipated cash flow requirements . All investments must have stated maturities to ten ( 10) years or less and no more than 25 % of the portfolio shall be invested in instruments with stated final maturities greater than five (5 ) years . The portfolio shall have securities with varying maturity and at least 10 % of the portfolio shall be invested in readily available funds . All constitutional officers with the exception of the Tax Collector follow this policy . The Tax Collector ' s policy is to limit maturities to 12 months or less and maintain 95 % of the portfolio in readily available funds . Credit Risks State law ( Section 218 . 415 of the Florida State Statutes) and the County ' s investment policy limit investments to the following : 1 . Direct obligations of the United States Treasury ; 2 . State of Florida Local Government Surplus Trust Fund ( SBA) ; �. 3 . Florida Local Government Investment Trust Fund (FLGIT) ; 4 . Interest-bearing time deposits or savings in qualified public depositories as defined in Section 280 . 02 Florida Statutes ; 5 . Federal agencies and instrumentalities ; 6 . Securities of, or other interests in, any open- end or closed- end management-type investment company or investment trust registered under the Investment Company Act of 1940 , 15 U . S . C . ss . 80a- 1 et seq . , as amended from time to time , provided that the portfolio of such investment company or investment trust is limited to obligations of the United States Government or any agency or instrumentality thereof and to repurchase agreements fully collateralized by such United States Government obligations , and provided that such investment company or investment trust takes delivery of such collateral either directly or through an authorized custodian ; 7 . Securities and Exchange Commission registered money market funds with the highest credit quality rating from a nationally recognized rating agency ; 8 . Repurchase agreements with a term of one year or less collateralized by direct obligations of the United States Government which have maturities of three (3 ) years or less and a market value ' 103 % or more of the repurchase amount . Upon issuance of the Water and Sewer Bonds , Series 1993A and 1993B , the Board invested the required sinking fund reserve monies , $ 3 , 139 , 285 , in a guaranteed investment contract with AIG Matched Funding Corporation. This contract is for the life of the bonds and has a rate of earnings slightly less than the arbitrage yield of the bonds . Please refer to subsequent event note (Note 20) for an update on the Florida Local Government Surplus Trust Fund ( SBA) . 65