Guaranteed Student Loan Program, Commissioner of Higher Education Financial Audit for the Fiscal Year Ended .. 1990

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The state's policy is to fund accrued pension costs although unfunded liabilities exist. Based on their most recent actuarial valuation reports, both the PERS and the TRS were actuarially sound.
INVESTMENTS Investments are units purchased in the state of Montana's Short Terra Investment Pool (STIP) and are reflected at cost which equals market. At June 30, 1990, GSL owned 33,028 units valued at $100 per unit for a total of $3,302,800. STIP securities include Banker's Acceptances, Commercial Pap
...er, Corporate Obligations, Montana Certificates of Deposit, Government Securities, and Repurchase Agreements. At June 30, 1990, most securities (approximately 95 percent) were held by the state or its agent in the state's name. The remaining portion (approximately 5 percent) were loaned under a security lending agreement with the state's agent.
4. DUE FROM FEDERAL GOVERNMENT The Guaranteed Student Loan Program pays individual lending institutions for any loans that have been defaulted or are unpaid due to the death of the borrower.


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