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 › OTHER PERSONS › Section 271.396 - Trust fund management-persons other than municipalities and municipal authorities

Current through Register Vol. 54, No. 28, July 13, 2024
(a) The
						  trustee may 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 judgement, skill and care under the circumstances then prevailing
						  which persons of prudence, discretion and intelligence, who are familiar with
						  such 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 purposes of
						  investing or reinvesting the moneys in the trust fund, the trustee is
						  authorized to do the following:
(1) Purchase
						  direct obligations of the United States Government, the Commonwealth, its
						  municipalities, municipal authorities or school districts, the 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 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) Purchase repurchase agreements with
						  respect to direct obligation of the United States or its agencies or
						  instrumentalities backed by the full faith and credit of the United States and
						  obligations of an agency or instrumentality of the United States if entered
						  into with a bank, trust company or a broker or dealer-as defined by section 3
						  of the Securities Exchange Act of 1934 (15 U.S.C.A. §
															78c.) The
						  broker or dealer shall be a dealer in government bonds who reports to, trades
						  with, is recognized as a primary dealer by a Federal reserve bank and is a
						  member of the Securities Investors Protection Corporation. Obligations that are
						  the subject of repurchase agreements under this subsection shall meet the
						  following criteria:
(i) The obligations that
						  are the subject of the repurchase agreement shall be either delivered to the
						  trustee or supported by a safekeeping receipt issued by a depository
						  satisfactory to the trustee.
(ii)
						  The repurchase agreement shall provide that the value of the underlying
						  obligation shall be maintained at a current market value, calculated no less
						  frequently than monthly, of not less than the purchase price of the
						  obligation.
(iii) The trustee has
						  been granted a prior perfected security interest in the obligation.
(iv) The obligation shall be free and clear
						  of adverse third-party claims.
(6) Hold cash awaiting investment or
						  distribution for a reasonable period of time.
(7) Transfer assets of the trust fund to a
						  common, commingled or collective trust fund which may be created by the
						  trustee.