Pennsylvania Code › Title 25 - ENVIRONMENTAL PROTECTION › Part I - Department of Environmental Protection › Subpart D - Environmental Health and Safety › Article VIII - Municipal Waste › Chapter 271 - MUNICIPAL WASTE MANAGEMENT-GENERAL PROVISIONS › Subchapter D - FINANCIAL ASSURANCES REQUIREMENTS › ENVIRONMENTAL IMPAIRMENT LIABILITY FINANCIAL ASSURANCES › Section 271.387 - Trust fund; management-municipalities and municipal authorities

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The trustee
						  shall invest and reinvest the principal and income of the trust fund and keep
						  the fund invested as a single fund, without distinction between principal and
						  income. In investing, reinvesting, exchanging, selling and otherwise managing
						  the trust fund, the trustee shall discharge its duties solely in the interest
						  of third-party claimants and with care to avoid loss or diminution of the trust
						  fund capital. The trustee shall manage the trust fund with that degree of
						  judgment, skill and care under the circumstances then prevailing which persons
						  of prudence, discretion and intelligence, who are familiar with these matters,
						  exercise in the management of their own affairs, not in regard to speculation,
						  but in regard to the permanent disposition of funds, considering the probable
						  income to be derived therefrom as well as the probable safety of their
						  capital.
(b) For the purposes of
						  investing or reinvesting the moneys in the trust fund, the trustee is
						  authorized to:
(1) Purchase direct
						  obligations of the United States Government, the Commonwealth, its
						  municipalities, municipal authorities or school districts, the Pennsylvania
						  Turnpike Commission, the General State Authority and the State Public School
						  Building Authority.
(2) Invest in
						  time or demand deposits of the trustee, to the extent insured by an agency of
						  the Federal or a State government.
(3) Purchase shares in an investment company
						  registered under the Investment Company Act of 1940 (15 U.S.C.A. §§
															80a-1-80 a-64).
(4) Purchase of prime commercial paper.
						  Commercial paper is defined as unsecured promissory notes issued at a discount
						  from par or on an interest bearing bond by an industrial, common carrier,
						  public utility, finance company, real estate investment trust, commercial bank
						  holding company or corporations whose credit shall have been approved by
						  Moody's Investors Service Incorporated or their successors. The trustee may not
						  purchase commercial paper under this provision unless the commercial paper
						  proposed to be purchased is rated Prime-1 or Prime 1-LOC or Prime-2 by Moody's
						  Investors Service Incorporated, A-1 or A-2 by Standard and Poor's Corporation
						  or Fitch 1 by Fitch Investors Services, Incorporated.
(5) Hold cash awaiting investment or
						  distribution for a reasonable period of time without liability for the payment
						  of interest thereon.
(6) Transfer
						  assets of the trust fund to a common, commingled or collective trust fund which
						  may be created by the trustee.