Common use of MUNICIPAL OBLIGATIONS Clause in Contracts

MUNICIPAL OBLIGATIONS. Investments may be made in debt obligations issued by states, territories and possessions of the United States and The District of Columbia and their political subdivisions, agencies and instrumentalities, or multi-state agencies or authorities, the interest from which is exempt from federal income tax on the following conditions: (a) The obligations may be either so called “general obligations” bonds or “revenue” issues as those terms are commonly understood; (b) All such obligations shall, at the time of purchase, be rated by either Xxxxx’x or S&P as follows: (i) Xxxxx’x Baa or higher for bonds; MIG 1 or MIG 2 for notes; or (ii) S&P: BBB- or higher for bonds; SP-1 or SP-2 for short-term municipal notes; and (c) Investments under this provision shall not be made in excess of (i) for municipal obligations, 20% of Trust Assets, or (ii) for revenue issues, 10% of Trust Assets. (d) These investments will be made when justified without regard to their tax-exempt status because the Companies may not obtain the traditional tax benefit of these investments.

MUNICIPAL OBLIGATIONS. Investments may be made in debt obligations issued by states, territories and possessions of the United States and The District of Columbia and their political subdivisions, agencies and instrumentalities, or multi-state agencies or authorities, the interest from which is exempt from federal income tax on the following conditions: (a) The obligations may be either so called “general obligations” bonds or “revenue” issues as those terms are commonly understood; (b) All such obligations shall, at the time of purchase, be rated by either Xxxxx’x or S&P as follows: (i) Xxxxx’x Baa or higher for bonds; MIG 1 or MIG 2 for notes; or (ii) S&P: BBB- or higher for bonds; SP-1 or SP-2 for short-term municipal notes; and (c) Investments under this provision shall not be made in excess of (i) for municipal obligations, 2050% of Trust Assets, or (ii) for revenue issues, 1020% of Trust Assets. (d) These investments will be made when justified without regard to their tax-exempt status because the Companies may not obtain the traditional tax benefit of these investments.