Frequently Asked Questions

About Michigan CLASS

Q: Who oversees Michigan CLASS?
A: Investments made on behalf of the Participants are subject to the overall direction of the program’s Board of Trustees, which consists of eleven Trustees serving on behalf of the Participants for staggered terms. The Board of Trustees approves the program’s investment
parameters, which must additionally fall within the investment stipulations mandated under Michigan statute for the investment of surplus funds of the Participants. The Board of Trustees has entered into an investment advisory agreement with Cutwater Investor Services Corp., which is responsible to the Board for all program investment and administrative activities and services provided on behalf of the Participants. More information is available on About Michigan CLASS.

Q: What type of securities does Michigan CLASS invest in?
A: Michigan CLASS invests consistent with the Investment Criteria contained in the Participation Agreement, the Board and the Investment Advisor are authorized to invest assets in only the following:

US Treasury Bonds, Bills, Notes and Treasury Strips
Obligations of an agency or instrumentality of the United States
Commercial paper rated at the time of purchase within the highest classification established by not less than two standard rating services and that matures not more than 270 days after the date of purchase.
Banker's acceptances issued by FDIC member United States banks
Repurchase Agreements collateralized at 102% with PSA Master Repurchase agreement on file and or tri-party custody agreement on file.
Certificates of deposit issued by and deposit accounts of a financial institution eligible under law to be a depository of Participant local units of government.
Mutual funds registered under the investment company act of 1940, maintaining a $1.00 per share net asset value.

Q: What are the investment objectives for Michigan CLASS?
A: There are three investment objectives for Michigan CLASS:

Safety: minimizing risk by managing portfolio investments so as to preserve principal and maintain a stable asset value and to maintain the highest rating for the pool from a nationally recognized statistical rating organization for so long as such rating is required by Michigan law.
Liquidity: managing portfolio investments to ensure that cash will be available as required to finance Participants’ operations.
Yield: maximizing current income to the degree consistent with legality, safety and liquidity.

Q: Is Michigan CLASS rated?
A: Michigan CLASS is rated AAAm by Standard and Poor's Rating's Services, the highest rating assigned to principal stability government investment pools. This rating reflects the conservative nature of the pool's investments as well as the excellent credit quality of the program. Standard and Poor's monitors the pool on a weekly basis. See the current reports in the Document Center for more details.

Establishing a Michigan CLASS Account

Q: Who is eligible to use Michigan CLASS?
A: Participation in CLASS is available to any county, city, village, township, school district, authority, or any other political subdivision organized under the laws of the State of Michigan. To join, such public entities need only to become party to the Agreement by adopting the necessary authorizing resolution, and by providing a certified copy of such resolution to Cutwater Investor Services Corp. (CISC). CISC will then notify the Custodian and the other Participants in writing, and commence the procedures necessary for the new Participant to begin using the program. Pursuant to applicable state law, CISC will review your investment policy and return the appropriate acknowledgment.

Q: How can an eligible entity establish an account?
A: To participate in Michigan CLASS, the following steps must be taken:

The participant's Board must adopt the Participant Agreement by signing Exhibit D (Trust Agreement) or pass a Resolution authorizing participation in CLASS.
Complete the Registration Form.
Complete the Depository Bank and Authorized Wire Accounts form for each of the blank accounts will be transferring funds to/from.
Complete the CLASS Accounts to be Established form. You may open as many as you wish

Keep a copy of all forms for your files, fax a copy to 1-800-765-7600 and mail original forms to:

Michigan CLASS Client Services

c/o Cutwater Investor Services Corp.

113 King St.

Armonk, NY 10504

Q: What is the minimum requirement for investing in Michigan CLASS?
A: There is no minimum investment amount for Michigan CLASS.

Q: What transaction fees does Michigan CLASS charge?
A: Michigan CLASS does not charge any transaction fees.

Q: Does Michigan CLASS limit the number of subaccounts?
A: Michigan CLASS does not limit the number of subaccounts.

Client Connection

Q: What is Client Connection?
A: Client Connection is a secure, internet based transaction system that allows Michigan CLASS Participants to self management their investments. Client Connection is available 24/7, 365 days a year. Participants can pre-date important transactions, ensuring that they are handled reliably, and avoiding unfortunate timing issues or cash access emergencies.

Q: How does a Participant access Client Connection?
A: Michigan CLASS Participants need to contact Client Services to obtain a Personal Identification Number (PIN) and instruction on using Client Connection.

Q: What functions can Client Connection perform?
A: Client Connection allows Participants to make contributions or withdrawals, or transfer funds from subaccounts. Participants can also review all transactions: previous day, same day or pending future transactions. Additionally, Participants can access rate information (current and historic) and explanations of rates reported, plus view detailed account summaries and interest payment summaries.

Managing My Account

Q: When is the daily cut-off for an investment in Michigan CLASS?
A: Participant investments may be made at any time during the business day, with interest posted on such investment for that day, subject to notification of Client Services by 3:00 P.M., Eastern time, by Client Connection, fax or phone, that an investment will be made.

Q: When is the daily cut-off for a disbursement from Michigan CLASS?
A: Disbursement requests received by made by 12:00 P.M., Eastern time, will be processed and paid the same day.

Q: What happens if I make an investment after the cut-off time?
A: Investments made after 3:00 P.M., Eastern time will be posted the next business day.

Q: What happens if I make a disbursement request after the cut-off time?
A: Disbursement requests made after 12:00 P.M., Eastern time will be posted the next business day.