Same: Bonds of Domestic and Foreign Corporations; Index-Eligible Securities

(a)Bonds of Domestic Corporations. Bonds, debentures, notes and other evidences of indebtedness of any corporation, or corporations created or existing under the laws of the United States, or of any of the states or territories of the United States, or the District of Columbia, which are not in default either as to principal or interest, provided that: CH. 8 RETIREMENT OF PUBLIC EMPLOYEES

(1)such bonds or other evidence of indebtedness are rated within the four

(4)highest categories of two

(2)nationally recognized and published rating services which have been approved by the Board and the investment agent; or

(2)in case such bonds or other evidence of indebtedness are not so rated by two

(2)such services, investments in such lesser-ranked domestic corporate bonds shall not exceed fifteen percent (15%) of the Fund at cost;

(3)No more than five percent (5%) of the Fund at cost shall be invested in the obligations of any one

(1)domestic corporation or other single domestic issuing entity described in this Subsection.

(b)Bonds of Foreign Corporations. Bonds, debentures, notes and other evidences of indebtedness of any corporation, or corporations created or existing under the laws of nations other than the United States which are not in default either as to principal or interest; provided, that the Investment Agent in its informed opinion, determines that such an investment would be employed by a prudent person acting in a like capacity and familiar with such matters would use in the investment of a fund of like character and with like aims.

(c)No investment shall be made in any one

(1)issue described in Subsections

(a)and

(b)of this Section in an amount in excess of ten percent (10%) of such issues.

(d)Securities in Board-Approved Bond Benchmark Indices. Bonds, debentures, notes and other evidences of indebtedness which are denominated in U.S. Dollars, and of the quality of fixed income securities covered by applicable bond benchmark indices approved by the Board of Trustees.

(e)Bonds authorized under this Section may be purchased and held in investment funds authorized under § 8158, or in exchange-traded funds authorized under § 8158.1; such purchases shall be excluded from the limitations of § 8158(e) and § 8158.1(b).