Revenues from Investments

In the various school funds, the cash flow is such that the Trustees may need to borrow or invest money on a short-term basis. Since there appears to be a positive correlation between the cost of borrowing money and the amount of investments purchased through any one banking institution , it should be the general practice of the administration to invest rated fund monies through the institution that successfully provided the most recent financial loan. However, the administration may choose any other institution that has an investment plan which is more desirable and advantageous to the school system than is offered by the institution which provided the most recent loan.

Legal Reference: 

TITLE 20A MRSA, SEC. 1312

Adopted: 6-11-1986

Revised: 8-17-1994